Time to Unbridle U.S. Thoroughbred Racetracks? Lessons from Australian Bookies
| Autor: | Joseph M. G. Keller, Charles C. Moul |
|---|---|
| Rok vydání: | 2014 |
| Předmět: |
Horse racing
Organizational Behavior and Human Resource Management Economics and Econometrics Counterfactual conditional Financial economics Strategy and Management Reduced form Counterintuitive Regulatory reform Profit (economics) Management of Technology and Innovation Economics Marketing Intuition |
| Zdroj: | Review of Industrial Organization. 44:211-239 |
| ISSN: | 1573-7160 0889-938X |
| DOI: | 10.1007/s11151-014-9418-z |
| Popis: | We consider a policy reform that would relax price controls in American pari-mutuel wagering on horse racing by examining bookie behavior in Australia's fixed-odds gambling sector. Descriptive regressions indicate that bookmaker takeouts (theeffectivepricesofraces)varysubstantiallyandsystematicallywithracecharacter- istics, though in sometimes counterintuitive ways. Estimates of an explicitly reduced form model of bookie takeout, however, can qualitatively match both intuition and prior findings in the literature. Counterfactuals that use these estimates suggest that regulatoryreformthatpermitsracecourses toaltertakeout acrossraceswouldincrease variable profit by about 5%. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|