Abstract
Systematic bettor misperceptions are found in the NBA point spread gambling market for the seasons of 1995-1996 to 2001-2002. Evidence of the overbetting of favorites is found, with a strategy of betting big underdogs rejecting the null of a fair bet. Betting big home underdogs not only rejects a fair bet but is also shown to reject the null of no profitability. In addition, betting against winning streaks, as first suggested in the “hot-hand” article of Camerer and later tested by Brown and Sauer, is also shown to be profitable.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 390-400 |
| Number of pages | 11 |
| Journal | Journal of Sports Economics |
| Volume | 6 |
| Issue number | 4 |
| DOIs | |
| State | Published - Nov 2005 |
| Externally published | Yes |
Keywords
- efficient markets
- gambling
- sports
ASJC Scopus subject areas
- Economics, Econometrics and Finance (miscellaneous)