This paper investigates the reason why expected returns to identical bets placed at different odds vary significantly and systematically from one another. It is hypothesized that the cause is the existence for bettors of positive transactions costs. Two different arenas, fixed odds and spread...

This paper examines the existence of significant differences in the expected returns to bets placed about identical outcomes in different sectors of a betting market. In an informationally efficient market, such differences should be arbitraged away. Evidence is presented here which suggests...