Optimal pricing in the online betting market
研究了风险规避的博彩公司如何根据需求弹性和结果数量设定最优赔率，并发现订单流冲击导致的赔率调整会为知情投资者创造套利机会，实证支持了这些预测。
I find that the optimal price of a bet for a risk-averse bookmaker is a function of elasticity of demand and the number of outcomes of the betting event. In the presence of shocks to the order flow, however, the optimal price can change, and large adjustments can create arbitrage opportunities for informed investors. Using a large sample of online bookmakers and a unique data set of real-time betting odds, I find strong support for these predictions. Overall, the results shed new light on the efficiency of online betting prices.