Profitable Robot Strategies in Pari‐Mutuel Betting

dc.contributor.author	Bjerksund, Petter
dc.contributor.author	Stensland, Gunnar
dc.date.accessioned	2017-04-07T09:33:53Z
dc.date.available	2017-04-07T09:33:53Z
dc.date.issued	2017-04-07
dc.identifier.issn	1500-4066
dc.identifier.uri	http://hdl.handle.net/11250/2437106
dc.description.abstract	We have collected odds and results from 7 474 horse races in Norway and Sweden for a period of approximately 1.5 years. Based on the odds from the win game, we construct a profitable betting strategy for the corresponding triple game. Given a 30% track take, the existence of a profitable strategy is surprising. A robot is typically needed to identify and exploit underrated bets. We argue that the existence of heterogeneous beliefs between players in the market might form a basis for profitable betting strategies. We did expect that bigger pools (more liquidity) would remove this anomaly. That is not the case. More players, and thereby bigger pools, increases the profitability of the system.	nb_NO
dc.language.iso	eng	nb_NO
dc.publisher	FOR	nb_NO
dc.relation.ispartofseries	Discussion paper;6/17
dc.subject	Horse races	nb_NO
dc.subject	low odds bias	nb_NO
dc.subject	heterogeneous beliefs	nb_NO
dc.title	Profitable Robot Strategies in Pari‐Mutuel Betting	nb_NO
dc.type	Working paper	nb_NO
dc.source.pagenumber	20	nb_NO