Modelling the Relationship Between SP, BSP and Beyond. A practical investigation using UK & Irish racing data
Most bettors understand that the bookmaker Starting Price (SP) and the Betfair Starting Price (BSP) do not behave in the same way. Both are generated from the same race but from very different market mechanisms. SP reflects margin, trading between firms, liability management, and long-established conventions in odds-setting. BSP reflects the aggregated judgement of thousands…