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Grant, A., Oikonomidis, A., Bruce, A.C. 
ORCID: 0000-0001-5748-0701 and Johnson, J.E.V.,
2018.
New entry, strategic diversity and efficiency in soccer betting markets: the creation and suppression of arbitrage opportunities.
The European Journal of Finance, 24 (18), pp. 1799-1816.
ISSN 1351-847X
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Abstract
We find that prices offered by competing bookmakers within the same quote-driven soccer (football) betting market provide arbitrage opportunities. However, the management practices of bookmakers prevent informed bettors exploiting these in practice. We identify two groups of bookmakers, 'position-takers' and 'book-balancers.' Position-takers alter their odds infrequently, while actively restricting informed traders. Book-balancers actively manage inventory by adjusting odds, and place few restrictions on their customers. We identify 545 arbitrage portfolios, and find that around 50% would require a bet on the favourite at the position-taking bookmaker. The management practices of position-takers generally prevent these opportunities being exploited in practice.
| Item Type: | Journal article | ||||
|---|---|---|---|---|---|
| Publication Title: | The European Journal of Finance | ||||
| Creators: | Grant, A., Oikonomidis, A., Bruce, A.C. and Johnson, J.E.V. | ||||
| Publisher: | Taylor & Francis | ||||
| Date: | 2018 | ||||
| Volume: | 24 | ||||
| Number: | 18 | ||||
| ISSN: | 1351-847X | ||||
| Identifiers: |
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| Divisions: | Schools > Nottingham Business School | ||||
| Record created by: | Linda Sullivan | ||||
| Date Added: | 29 Nov 2018 16:01 | ||||
| Last Modified: | 05 Sep 2019 03:00 | ||||
| URI: | https://irep.ntu.ac.uk/id/eprint/35180 |
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