Use this URL to cite or link to this record in EThOS:
Title: Essays on the economics of betting markets
Author: Brown, Alasdair
Awarding Body: SOAS, University of London
Current Institution: SOAS, University of London
Date of Award: 2012
Availability of Full Text:
Access from EThOS:
Full text unavailable from EThOS. Please try the link below.
Access from Institution:
This thesis comprises three sections. The first utilises novel data from a recently developed betting exchange to examine informational issues in market microstructure. Among other things, the betting exchange allows us to observe (uncontrolled) private information and learn about the behaviour of informed traders in a simple asset market. The second section studies U.K. horse-racing for signs of conflict between horse owners (principals) and trainers (agents). Trainers often prepare their own horses for races in addition to having outsiders' horses in their care. We find evidence of agent shirking, as observed in other arenas, but also evidence of an informational rent - linked to betting market manipulation - extracted by the agent. The third section takes a microscopic look at market efficiency and the limits to arbitrage on a betting exchange. The arbitrage trade on which we focus is not subject to the most prominent limit - noise-trader risk - which gives us a cleaner examination of the remaining limits to arbitrage.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral