Busch and Walls analyze more than 10,000 horse races over three years, in order to observe the connection between market efficiency and the decision-cost theory. This is economic based research that determines the betting activity in relation to the bettor s expertise. In 1977, Mukhatar M. Ali concluded that longshots were overbet in relation to the favorites, because the favorites consistently rewarded higher returns. The size of the betting pool determines the value of the odds. The market efficiency is determined by the amount of bettors competing against one another.
Longshots are overbet by recreational gamblers, in hopes of hitting a big score.
Professional bettors will conduct extensive research prior to engaging in a serious betting career. This type of research was efficient at tracks with smaller betting volumes, where differences could be observed from the betting pool. Motivation and gambling involvement. Chantal and Vallerand question the motivational forces behind gambling. People continue to gamble even though they are aware that it is an addictive behavior and not financially beneficial.