Racial Discrimination in Asset Prices: Evidence From Horse Betting
研究赛马博彩中，马匹训练师姓氏的种族特征如何影响赌注回报，发现非白人训练师的马匹有更高风险调整回报，且差异在风险较高的赌注中更明显，表明歧视主要来自信息较少的赌徒。
ABSTRACT In the presence of behavioral biases, prices can diverge from fundamentals, and the effects of racial/ethnic bias are evident in many financial and nonfinancial markets. We investigate the determinants and consequences of discrimination in parimutuel horse betting by assessing return differences across horses whose trainers have racially/ethnically distinctive surnames, which bettors may see as a proxy for quality (accurately or inaccurately) or a source of nonpecuniary returns (due to animus). Bets on horses with non‐White‐named trainers earn higher risk‐adjusted returns, and these differences are especially pronounced among riskier bets, which receive lower average returns under the well‐known “favorite–longshot” bias. Racial/ Ethnic return differences are stronger—overall and especially among longshots—for “win” than “place” and “show” bets, among horses with poor prior performance, and in low‐stakes races with “fast” conditions. These results are consistent with the effects of discrimination being strongest among less‐informed and less‐sophisticated bettors.