The rate of return to investment in thoroughbred racehorses is widely believed to be negative on average. In a world of fully informed market participants, this implies that ownership of a racehorse is motivated in part by nonfinancial attributes, perhaps a taste for sport. This article presents...

This paper presents results of estimating an exchange rate equation in light of theoretical considerations regarding changes in sterilization and intervention policy and tax policy which imply that the coefficients in the equation will not behave as fixed parameters in a given sample period,as...

CORRIGENDUM In "The Economics of Wagering Markets", by Raymond D. Sauer (December 1998), the two-paragraph discussion on page 2039 of Hurley and McDonough’s (1996b) model of the favorite long-shot bias contains an error of attribution. Whereas the results discussed in the second paragraph are...

Wagering markets provide a natural laboratory for testing models of market prices and behavior under uncertainty. The literature on wagering, albeit contentious, has established the following. First, prices set in these markets, to a first approximation, are efficient forecasts of outcomes....