The Favourite-Longshot Bias and Market Efficiency in UK Football Betting

Posted: 21 Nov 2000

See all articles by David A. Peel

David A. Peel

Lancaster University - Lancaster University Management School

David Law

University of Wales, Aberystwyth

Michael Cain

University of Wales, Bangor - School for Business and Regional Development; University of Salford

Abstract

It is shown that the individual fixed-odds betting market on UK football exhibits the same favourite-longshot bias as that found in horse-racing. The bias appears both in betting on results (home win, away win or draw) and in betting on specific scores, and there are certain trading rules which appear to be profitable. Poisson and Negative Binomial regressions are carried out to estimate the mean number of goals scored by a team in a match with given market odds for the various outcomes. Tables of odds for individual scores are derived and these appear to fit the actual outcomes far better than those of the bookmaker.

JEL Classification: G14

Suggested Citation

Peel, David Alan and Law, David A. and Cain, Michael, The Favourite-Longshot Bias and Market Efficiency in UK Football Betting. Available at SSRN: https://ssrn.com/abstract=234996

David Alan Peel (Contact Author)

Lancaster University - Lancaster University Management School ( email )

Bailrigg
Lancaster, LA1 4YX
United Kingdom
+44 (0)1524 593590 (Phone)
+44 (0)1524 594244 (Fax)

HOME PAGE: http://www.lancs.ac.uk/staff/peeld/

David A. Law

University of Wales, Aberystwyth ( email )

Old College
King Street
Aberystwyth SY23 2AX, Ceredigion, Wales SY23 3AS
United Kingdom

Michael Cain

University of Wales, Bangor - School for Business and Regional Development ( email )

Bangor Business School
College Road
Gwynedd LL57 2DG, Wales LL57 2DG
United Kingdom
01248-38-2161 (Phone)

HOME PAGE: http://sbard.bangor.ac.uk/index_english.asp?Page=76&staff=Yes

University of Salford ( email )

University of Salford
M5 4WT Salford, Lancashire M5 4WT
United Kingdom

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
1,582
PlumX Metrics