How digitalization can shape markets: the case of sports betting
利用体育博彩市场同质产品的特点，研究2000至2023年间数字化对交易成本和信息效率的影响，发现交易成本下降超60%且市场更有效。
Abstract Digitalization has an impact on many vested businesses, decreasing marginal costs and increasing informed customers, among other things. However, measuring the impact of digitalization remains difficult. Betting markets provide a clean setting to estimate the price impact of digitalization, as products are homogeneous and it is easy to measure pricing behaviour. Consistent with mixed strategy models under imperfect information, we show that between 2000 and 2023, transaction costs for gamblers dropped by over 60%, although transaction‐cost dispersion persists. Furthermore, we also find that betting markets became more informationally efficient over this period, with a significant decrease in the favourite–longshot bias.