In this article, the authors test two different kinds of bias—the favorite-long shot/favorite-underdog bias and the home team bias—and distinguish between the two, using a distinctive feature of the Australian Football League (AFL): the fact that many games are played on neutral...

Anchoring effects refer to a phenomenon whereby people make absolute estimates by starting from an initial point (anchor value) and adjusting upwards or downwards to reach their final answers (target values). A number of studies have demonstrated that these adjustments are often insufficient...

This paper builds on a theoretical model by Schnytzer, Lamers, and Makropoulou (2010) that conceptualizes fixed odds horse betting markets as implicit call option markets. We model the decision making process of a bookmaker that sets his prices under uncertainty. We extend the paper of Schnytzer...