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Information Efficiency in Betting Markets: a Survey
Author(s) -
Williams Leighton Vaughan
Publication year - 1999
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/1467-8586.00069
Subject(s) - market efficiency , economics , context (archaeology) , asset (computer security) , point (geometry) , efficient market hypothesis , financial market , value (mathematics) , financial economics , simple (philosophy) , financial market efficiency , microeconomics , finance , computer science , stock market , paleontology , philosophy , geometry , computer security , mathematics , epistemology , machine learning , biology
The concept of information efficiency is central to many studies of financial markets, and these studies have been well surveyed to date. A betting market is an example of a simple financial market, but one which offers researchers the added advantage that it is characterized by a well‐defined termination point at which each asset (or bet) possesses a definite value. In consequence, it is much more convenient to use this particular context to formulate tests of information efficiency, and from these tests to draw useful conclusions. This paper surveys the rapidly growing literature which has to date addressed this issue of information efficiency in betting markets.