This article is an analysis of the price movements in a speculative market at closing. Specifically, we look at 1644 US horse races and analyse the change in betting pool totals and their suggested probabilities to confirm that late wagers on average come from more informed bettors. Almost 40%...

Previous studies of efficient markets in parimutuel betting isolated only one race characteristic, determining efficiency by comparing subjective to objective probabilities of different groupings. By incorporating regression analysis and looking at a wide range of race specific variables, this...