DSpace Kyoto University
Japanese | English 

Kyoto University Research Information Repository >
Institute of Economic Research >
KIER Discussion Paper (English) >

Access count of this item: 53

Please use this identifier to cite or link to this item: http://hdl.handle.net/2433/192279

Full text link:

File Description SizeFormat
DP907.pdf342.52 kBAdobe PDFView/Open
Title: Favorite-Longshot Bias in Parimutuel Betting: an Evolutionary Explanation
Authors: Kajii, Atsushi
Watanabe, Takahiro
Issue Date: Dec-2014
Publisher: Institute of Economic Research, Kyoto University
Journal title: KIER Discussion Paper
Volume: 907
Abstract: We offer an evolutionary explanation for the favorite-longshot bias in pari-mutuel betting, in a simple evolutionary market model. Because of a positive track take, the expected returns of any strategy stay negative and so any agent must vanish in the long run. Those who bet on favorites lose steadily whereas those who favor long shots have some chances of getting ahead with rare but large gains to survive longer. This relative advantage results in overvaluation of long shots.
URI: http://hdl.handle.net/2433/192279
Appears in Collections:KIER Discussion Paper (English)

Export to RefWorks

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.


Powered by DSpace 3.2.0 and JAIRO Crawler-List version 1.1
All items in KURENAI are protected by original copyright, with all rights reserved, unless otherwise indicated.