Parimutuel system of the Japanese race track: Voting and ranking process

Authors

  • Yohei Tutiya Kanagawa Institute of Technology
  • Kazutaka Kurihara Tsuda College

DOI:

https://doi.org/10.5750/jgbe.v9i2.986

Keywords:

pari-mutuel system, time series of odds, FL bias, principal component analysis, cluster analysis, horse-racing

Abstract

We investigated a time series of betting rates in a pari-mutuel betting system of Japanese horse races.  Principal component analyses and cluster analyses suggest that the level of expectation for the favorite is the most important factor when classifying races. The dataset of the odds determined before the races used in this study is exceedingly large and detailed compared to previous studies. We also conducted detailed research on whether bets placed on the favorites tend to be concentrated just before the race.

Author Biographies

Yohei Tutiya, Kanagawa Institute of Technology

Center for Basic Education and Integrated Learning, associate professor

Kazutaka Kurihara, Tsuda College

Department of Computer Science, associate professor

References

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L V Williams ‘Information Efficiency in Financial and Betting Markets’ (2005) Cambridge University Press pp 84-122

M C Sung and J Johnson ‘Semi-strong form efficiency in the horserace betting market’ in D B Hausch and W T Ziemba (ed) Handbook of Sports and Lottery Markets (Handbooks in Finance) (Elsevier, Amsterdam , NL, 2008) pp 275-306

L Coleman ‘New light on the longshot bias’ (2004) 36 Applied Economics pp 315-326

A C Bruce and J E V Johnson ‘Toward an Explanation of Betting as a Leisure Pursuit’ (1992) 11 Leisure Studies pp 201-218

M Gramm and C N Mckinney ‘The effect of late money on betting market efficiency’ (2009) 16 4 Applied Economics Letters pp 369-72

Published

2015-10-06

Issue

Section

Articles