Many empirical studies have found the existence of a bias where the general public overestimates low probability events. This phenomenon has been termed the favourite-longshot bias and has been much studied in betting markets. This article looks at efficiency in multihorse 'exotic' wagers using...

Previous studies have found some degree of inefficiency in betting markets. However, it is difficult to implement a strategy to take advantage of these biases. This article investigates and attempts to arbitrage interrelated betting markets by undertaking three betting simulations using two...