@article {Koch:September 2008:1750-676X:29,
	author = "Koch, Alexander K.",
	author = "Shing, Hui-Fai",
	title = "Bookmaker and Pari-Mutuel Betting: Is a (Reverse) Favourite-Longshot Bias Built-In?",
	journal = "The Journal of Prediction Markets",
	volume = "2",
	year = "September 2008",
	abstract = "A widely documented empirical regularity in gambling markets is that bets on high probability events (a race won by a &#8220;favourite&#8221;) have higher expected returns than bets on low probability events (a &#8220;longshot&#8221; wins). Such favourite-longshot (FL) biases however appear to be more severe and persistent in bookmaker markets than in pari-mutuel markets; the latter sometimes exhibit no bias or a <I>reverse</I> FL bias. Our results help understand these differences: the odds grid in bookmaker markets leads to a built-in FL bias, whereas that used in pari-mutuel betting pushes these markets toward a <I>reverse</I> FL bias.",
	pages = "29-50(22)",
	url = "http://www.ingentaconnect.com/content/ubpl/jpm/2008/00000002/00000002/art00003"
}