Master's Thesis from the year 2012 in the subject Economics - Micro-economics, grade: 1,3, Frankfurt School of Finance & Management, language: English, abstract: The online sports betting markets industry has been gaining in popularity worldwideduring the last decade. The Internet gives punters faster access to their bookmaker andlets them easily compare the odds of many different bookmakers. Furthermore, manyonline gambling sites offer a wide range of different sports events and specialized betsfor their customers. Nowadays it is not only possible to bet on the final outcome of asoccer match, but even on the half-time result or the amount of goals scored during thematch.The betting exchange betfair makes it possible to bet against a certain outcome,meaning the punter can act as a bookmaker for a chosen event.Betting on outcomes of soccer matches is very interesting with regard to probabilitytheory because it is based on a numerical code: 0 for a draw, 1 if the home team winsand 2 if the home team loses. Therefore many textbooks on combinatorics considersoccer bets to be a prime example for probability theory. H. Matthes and H.K?chenhoff claim that soccer bets are a great example for the so-called subjectiveprobability, which they define as the degree of confidence with which an observerbelieves in the occurrence of a certain event based on the information he currently has.P(A) would be the maximum amount in EUR that he is willing to risk if he receivesexactly EUR 1 o...