Recent evidence suggests that the fastest algorithmic traders in financial markets profit at the expense of slower traders. One solution gaining traction is a 'speed-bump', which introduces a delay between the time in which an order is submitted, and when it is processed. We analyse the speed...

A common finding in laboratory studies is that subjects anchor on irrelevant initial cues when valuing assets. We run a field experiment to examine whether this heuristic can be exploited to manipulate prices in real markets. We provide early quotes in a series of horse race betting markets, and...

We conduct a field experiment to see if market liquidity has a causal effect on price efficiency and, if so, why. We randomly provide liquidity in certain horse race betting markets, and not in others. We find that prices in treated markets are indeed more efficient than prices in control...

Betting markets on horse races have typically taken one of two forms: 1) a parimutuel pool, where prices are uncertain until the market is closed, or 2) a fixed-odds market, where prices are fixed at the time the bet is placed. I study a hybrid betting market where a pool is run side-by-side...

Prices play a key informational role in markets by revealing the private information of a diverse set of participants. But can professional traders accurately decipher these price signals? Can these professionals separate out the signal (the information on fundamentals) from the noise (erroneous...

An open question in market microstructure is whether 'informed' traders have an advantage due to access to private, inside, information; or due to a superior ability to process public information. In this paper we attempt to answer this question with data from a sports betting exchange taken...