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| Type | Journal Article |
| Scope | Discipline-based scholarship |
| Title | Sonic Thunder vs. Brian the Snail: Are people affected by uninformative racehorse names? |
| Organization Unit | |
| Authors |
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| Item Subtype | Original Work |
| Refereed | Yes |
| Status | Published in final form |
| Language |
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| Journal Title | Journal of Behavioral and Experimental Economics |
| Publisher | Elsevier |
| Geographical Reach | international |
| ISSN | 2214-8043 |
| Volume | 93 |
| Number | August |
| Page Range | 101724 |
| Date | 2021 |
| Abstract Text | This paper examines whether individuals’ decision making is affected by fast-sounding horse names in a betting exchange market environment. In horse racing, the name of a horse does not depend on the horse's performance and is thus uninformative. If positive affect towards fast-sounding horse names is present, we expect less accurate prices, i.e., winning probabilities, and lower returns due to the increased demand for these bets. Using over 3 million horse bets, we find evidence that the winning probabilities of bets on horses with fast-sounding names are overstated, which impairs the prediction accuracy of such bets. This finding implies that prices in betting exchange markets are distorted by incorporating affective, misleading information from a horse's fast-sounding name. Consequently, this bias translates into significantly lower betting returns for horses with names classified as fast-sounding compared to the returns for all other horses. |
| Free access at | DOI |
| Related URLs | |
| Digital Object Identifier | 10.1016/j.socec.2021.101724 |
| Other Identification Number | merlin-id:21128 |
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