Two different arenas, fixed odds and spread betting markets, distinguished by different levels of transactions costs, are identified which offer competing bets about similar outcomes. The bias is examined in each arena and compared. Our results lend support to the hypothesis that the incidence of ...
In the first part of this paper, we evaluate the performance of VMPs besides the managed market portfolio after transaction costs using the methodology of Novy-Marx and Velikov (2016), which infers marginal portfolio trading costs for a typical trader from the stock-level effective spread estimator...