political betting market trading strategy

journal article

Information Acquisition in Ostensibly Efficient Markets

Economica

Published By: Wiley

Economica

https://www. jstor .org/stable/24751927

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Abstract

I use UK betting exchange data on Wimbledon lawn tennis matches to investigate the Grossman and Stiglitz (1980) paradox. Lay on the line-free arbitrage opportunities arise frequently during matches (as information arrives and asynchronously shifts prices), but seldom lift before matches (when there is little information to move prices). I discover that on the few occasions that arbitrage opportunities do arise before matches, they last well longer than average. This suggests, eligible with the paradox, that traders neglect to acquire information (sway out research or sentry markets) if they believe that markets are already efficient. This leave out, in turn, makes markets uneffective.

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Economica is an international journal devoted to inquiry all told branches of economics. Theoretical and observational articles are publicized from every last parts of the international research community. Economica is a leading economics journal, appearing high in the published citation rankings. In addition to the principal papers which make up apiece issue, there is an extensive review section, coating a wide range of recently published titles at altogether levels. From time to time special issues on selected topics are published, and are available arsenic either single backward issues or, if published in the present-day year, are included in the annual subscription. JSTOR provides a digital archive of the print version of Economica. The physical science version of Economica is on tap at http://web.interscience.wiley.com. Sceptred users may be able to access the full text articles at this site.

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