chapter  2
12 Pages

The favourite–longshot bias and the Gabriel and Marsden anomaly: an explanation based on utility theory

ByMICHAEL CAIN, DAVID PEEL, DAVID LAW

Introduction Research on gambling markets has focused on the discovery and explanation of anomalies that appear to be inconsistent with the efficient markets hypothesis; see Thaler and Ziemba (1988), Sauer (1998), and Vaughan Williams (1999) for comprehensive reviews of the salient literature.