TY - JOUR
T1 - Market frictions and overpriced favourites
T2 - Evidence from arena football
AU - Borghesi, Richard
AU - Paul, Rodney
AU - Weinbach, Andrew
N1 - Copyright:
Copyright 2009 Elsevier B.V., All rights reserved.
PY - 2009
Y1 - 2009
N2 - Prior academic studies find that bets on underdogs persistently win more often than expected in National Football League (NFL) and National Collegiate Athletic Association (NCAA) football gambling markets. We extend this stream of literature by examining this 'underdog bias' in the market for Arena Football League (AFL) bets, a setting in which both betting limits and bettor sophistication are comparatively low. Results show that the underdog bias is significantly stronger in the AFL, suggesting that smaller and less liquid markets are more heavily influenced by these, and perhaps other, behavioural biases.
AB - Prior academic studies find that bets on underdogs persistently win more often than expected in National Football League (NFL) and National Collegiate Athletic Association (NCAA) football gambling markets. We extend this stream of literature by examining this 'underdog bias' in the market for Arena Football League (AFL) bets, a setting in which both betting limits and bettor sophistication are comparatively low. Results show that the underdog bias is significantly stronger in the AFL, suggesting that smaller and less liquid markets are more heavily influenced by these, and perhaps other, behavioural biases.
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U2 - 10.1080/17446540802314519
DO - 10.1080/17446540802314519
M3 - Article
AN - SCOPUS:67650273287
SN - 1350-4851
VL - 16
SP - 903
EP - 906
JO - Applied Economics Letters
JF - Applied Economics Letters
IS - 9
ER -