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Baseball

Author

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  • Rodney J. Paul
  • Andrew P. Weinbach

Abstract

Due to the use of sports wagering market data as a laboratory to test the Efficient Markets Hypothesis, sports bettors have been assumed to behave as investors. With the rejection of the balanced book hypothesis and the persistent support of market efficiency, the notion of the sports bettor as investor should be in doubt. Using betting volume data from online sportsbooks, bettors are shown to substitute out of baseball betting into football betting when the season starts. The authors argue that these findings are consistent with consumer behavior, but inconsistent with the notion of bettors as investors.

Suggested Citation

  • Rodney J. Paul & Andrew P. Weinbach, 2013. "Baseball," Journal of Sports Economics, , vol. 14(2), pages 115-132, April.
    • Handle: RePEc:sae:jospec:v:14:y:2013:i:2:p:115-132
    DOI: 10.1177/1527002511417630
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    References listed on IDEAS

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    1. Woodland, Linda M & Woodland, Bill M, 1994. "Market Efficiency and the Favorite-Longshot Bias: The Baseball Betting Market," Journal of Finance, American Finance Association, vol. 49(1), pages 269-279, March.
    2. Rodney J. Paul & Andrew P. Weinbach, 2007. "Does Sportsbook.com Set Pointspreads to Maximize Profits? Tests of the Levitt Model of Sportsbook Behavior," Journal of Prediction Markets, University of Buckingham Press, vol. 1(3), pages 209-218, December.
    3. Zuber, Richard A & Gandar, John M & Bowers, Benny D, 1985. "Beating the Spread: Testing the Efficiency of the Gambling Market for National Football League Games," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 800-806, August.
    4. Sauer, Raymond D & Brajer, Vic & Ferris, Stephen P & Marr, M Wayne, 1988. "Hold Your Bets: Another Look at the Efficiency of the Gambling Market for National Football League Games: Comment," Journal of Political Economy, University of Chicago Press, vol. 96(1), pages 206-213, February.
    5. Rodney Paul & Andrew Weinbach & J. Weinbach, 2003. "Fair bets and profitability in college football gambling," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 27(2), pages 236-242, June.
    6. Lyn D. Pankoff, 1968. "Market Efficiency and Football Betting," The Journal of Business, University of Chicago Press, vol. 41, pages 203-203.
    7. Steven D. Levitt, 2004. "Why are gambling markets organised so differently from financial markets?," Economic Journal, Royal Economic Society, vol. 114(495), pages 223-246, April.
    8. Conlisk, John, 1993. "The Utility of Gambling," Journal of Risk and Uncertainty, Springer, vol. 6(3), pages 255-275, June.
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    Cited by:

    1. Linda M. Woodland & Bill M. Woodland, 2015. "The National Football League season wins total betting market: The impact of heuristics on behavior," Southern Economic Journal, John Wiley & Sons, vol. 82(1), pages 38-54, July.
    2. Andrés Barge-Gil & Alfredo Garcia-Hiernaux, 2020. "Staking in Sports Betting Under Unknown Probabilities: Practical Guide for Profitable Bettors," Journal of Sports Economics, , vol. 21(6), pages 593-609, August.
    3. Brian P. Soebbing & Pamela Wicker & Daniel Weimar & Johannes Orlowski, 2021. "How do Bookmakers Interpret Running Performance of Teams in Previous Games? Evidence From the Football Bundesliga," Journal of Sports Economics, , vol. 22(3), pages 231-250, April.
    4. Christian Deutscher & Marius Ötting & Sandra Schneemann & Hendrik Scholten, 2019. "The Demand for English Premier League Soccer Betting," Journal of Sports Economics, , vol. 20(4), pages 556-579, May.

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