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....