• Login
• Admin

Grant, Andrew, Oikonomidis, Anastasios, Bruce, Alistair C. and Johnson, Johnnie E.V. (2018) New entry, strategic diversity and efficiency in soccer betting markets: the creation and suppression of arbitrage opportunities. European Journal of Finance . ISSN 1466-4364

Preview

PDF - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader Download (433kB) | Preview

Abstract

We find that prices offered by competing bookmakers within the same quote-driven soccer (football) betting market provide arbitrage opportunities. However, the management practices of bookmakers prevent informed bettors exploiting these in practice. We identify two groups of bookmakers, ‘position-takers’ and ‘book-balancers.’ Position-takers alter their odds infrequently, while actively restricting informed traders. Book-balancers actively manage inventory by adjusting odds, and place few restrictions on their customers. We identify 545 arbitrage portfolios, and find that around 50% would require a bet on the favourite at the position-taking bookmaker. The management practices of position-takers generally prevent these opportunities being exploited in practice.

Item Type:	Article
Additional Information:	This is an Accepted Manuscript of an article published by Taylor & Francis in European Journal of Finance on 5 March 2018, available online: http://www.tandfonline.com/10.1080/1351847X.2018.1443148
Schools/Departments:	University of Nottingham, UK > Faculty of Social Sciences > Nottingham University Business School
Identification Number:	https://doi.org/10.1080/1351847X.2018.1443148
Depositing User:	Eprints, Support
Date Deposited:	22 Feb 2018 09:58
Last Modified:	05 Sep 2019 04:30
URI:	https://eprints.nottingham.ac.uk/id/eprint/49935

Actions (Archive Staff Only)

Edit View