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Bettor Misperceptions in the NBA

Author

Listed:
  • Rodney J. Paul

    (St. Bonaventure University)

  • Andrew P. Weinbach

    (Armstrong Atlantic State University)

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.

Suggested Citation

  • Rodney J. Paul & Andrew P. Weinbach, 2005. "Bettor Misperceptions in the NBA," Journal of Sports Economics, , vol. 6(4), pages 390-400, November.
    • Handle: RePEc:sae:jospec:v:6:y:2005:i:4:p:390-400
    DOI: 10.1177/1527002504266861
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    References listed on IDEAS

    as
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    9. 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.
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    Full references (including those not matched with items on IDEAS)

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