Egilea | |
Abstract |
In Pelota matches, bets are made between viewers through a middleman who receives 16\% of the finally paid amount. In this paper, a description of the way bets are made and an explanation of the existence of those markets are presented. Taking betting markets as a simplified analogy for financial markets we have searched for the explanation in a world where both sides of the market are not different in believes and preferences. We find that for a bet to exist when bettors are rank dependent expected utility maximizers, they have to be optimistic. Taking observations from actually made bets a preliminary analysis about the biases of those markets is presented. |
Year of Publication |
2008
|
Revista académica |
Documentos de Trabajo (Universidad Pública de Navarra. Departamento de Economía) Nº3
|
Volume |
64
|
Number of Pages |
421-446
|
Publication Language |
ENG
|
DOI |
10.1007/s11238-007-9060-4
|
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