You will be familiar with the straight bet; a bet to win, place or each-way. Exotic wagering is the placing of bets on two or more selections in one or multiple events. Known as forecast betting in the UK, bets include exactas and trifectas. In the context of exchange trading, exotic wagering can also include synthetic wagering such as backing one event and laying the same event but in another market so as to create a new bet with positive edge.
Listed here are academic papers on exotic wagering.
Asch, Peter, and Richard E. Quandt. "Betting bias in ‘exotic’bets." Economics Letters 28.3 (1988): 215-219.
Bacon-Shone, J., V. S. Y. Lo, and K. Busche. "Logistic analyses for complicated bets." Statistics 24 (1992): 193-202.
Gramm, Marshall, C. Nicholas McKinney, and Douglas H. Owens. "The efficiency of exotic wagers in racetrack betting." Applied Economics 40.1 (2008): 89-97.
Listed here are academic papers on exotic wagering.
Asch, Peter, and Richard E. Quandt. "Betting bias in ‘exotic’bets." Economics Letters 28.3 (1988): 215-219.
Bacon-Shone, J., V. S. Y. Lo, and K. Busche. "Logistic analyses for complicated bets." Statistics 24 (1992): 193-202.
Gramm, Marshall, C. Nicholas McKinney, and Douglas H. Owens. "The efficiency of exotic wagers in racetrack betting." Applied Economics 40.1 (2008): 89-97.
O'Connor, Philip F. "Inferring Risk Preferences Using Synthetic Win Bets in Horse Betting'Exotic'Markets." Available at SSRN 951071 (2006).
Oh, Han Suk. "Exotic craps bet and a novel place bet." (2011).
Mindes, Barry. "Method and system for fixed odds exotic and straight betting with pari-mutuel rules." (2011).
Rosenbloom, E. S. "THE BEST PROBABILITY MODEL FOR THE EXACTA."
Stein, William E., and Philip J. Mizzi. "An analysis of exotic wagers in a parimutuel setting." Applied Economics 35.4 (2003): 415-421.
Thalheimer, Richard, and Mukhtar M. Ali. "Exotic betting opportunities, pricing policies and the demand for parimutuel horse race wagering." Applied Economics 27.8 (1995): 689-703.
Mindes, Barry. "Method and system for fixed odds exotic and straight betting with pari-mutuel rules." (2011).
Rosenbloom, E. S. "THE BEST PROBABILITY MODEL FOR THE EXACTA."
Stein, William E., and Philip J. Mizzi. "An analysis of exotic wagers in a parimutuel setting." Applied Economics 35.4 (2003): 415-421.
Thalheimer, Richard, and Mukhtar M. Ali. "Exotic betting opportunities, pricing policies and the demand for parimutuel horse race wagering." Applied Economics 27.8 (1995): 689-703.