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The state of research on markets for sports betting and suggested future directions

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  • Raymond Sauer

Abstract

Studies of markets for sports betting can be a rich source of knowledge on the process of price formation and the information content of market prices. But recent research in this field examines questions of a technical nature, questions of interest mostly to active participants in the literature. A change in direction, motivated by creative use of the efficiency hypothesis, may deliver insights that would be valuable to the profession in general. Some preliminary analyses along these lines are presented in the hope of stimulating new lines of inquiry in the field. Copyright Springer 2005

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  • Raymond Sauer, 2005. "The state of research on markets for sports betting and suggested future directions," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 29(3), pages 416-426, September.
    • Handle: RePEc:spr:jecfin:v:29:y:2005:i:3:p:416-426
    DOI: 10.1007/BF02761586
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    References listed on IDEAS

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    1. Figlewski, Stephen, 1979. "Subjective Information and Market Efficiency in a Betting Market," Journal of Political Economy, University of Chicago Press, vol. 87(1), pages 75-88, February.
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    1. 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.
    2. Stekler, H.O. & Sendor, David & Verlander, Richard, 2010. "Issues in sports forecasting," International Journal of Forecasting, Elsevier, vol. 26(3), pages 606-621, July.
      • Herman O. Stekler & David Sendor & Richard Verlander, 2009. "Issues in Sports Forecasting," Working Papers 2009-002, The George Washington University, Department of Economics, H. O. Stekler Research Program on Forecasting.
    3. Petr A. Parshakov & Kseniya O. Baydina, 2017. "Brands or Uncertainty? An Empirical Test of the Uncertainty of Outcome Hypothesis in Russian Football," HSE Working papers WP BRP 163/EC/2017, National Research University Higher School of Economics.
    4. Paul Gift, 2020. "Moving the Needle in MMA: On the Marginal Revenue Product of UFC Fighters," Journal of Sports Economics, , vol. 21(2), pages 176-209, February.
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    6. Berkowitz, Jason P. & Depken, Craig A. & Gandar, John M., 2015. "Information and accuracy in pricing: Evidence from the NCAA men׳s basketball betting market," Journal of Financial Markets, Elsevier, vol. 25(C), pages 16-32.
    7. Jason P. Berkowitz & Craig A. Depken II & John M. Gandar, 2018. "The Conversion of Money Lines Into Win Probabilities," Journal of Sports Economics, , vol. 19(7), pages 990-1015, October.
    8. Mills, Brian M. & Salaga, Steven, 2018. "A natural experiment for efficient markets: Information quality and influential agents," Journal of Financial Markets, Elsevier, vol. 40(C), pages 23-39.
    9. Arne Feddersen & Brad R. Humphreys & Brian P. Soebbing, 2017. "Sentiment Bias And Asset Prices: Evidence From Sports Betting Markets And Social Media," Economic Inquiry, Western Economic Association International, vol. 55(2), pages 1119-1129, April.
    10. Benjamin Waggoner & Daniel Wines & Brian P. Soebbing & Chad S. Seifried & Jean Michael Martinez, 2014. "“Hot Hand” in the National Basketball Association Point Spread Betting Market: A 34-Year Analysis," IJFS, MDPI, vol. 2(4), pages 1-12, November.
    11. Yoon Tae Sung & Scott Tainsky, 2014. "The National Football League Wagering Market," Journal of Sports Economics, , vol. 15(4), pages 365-384, August.
    12. R. Alan Bowman & James Lambrinos & Thomas Ashman, 2018. "Prospective measures of competitive balance application to money lines in the national hockey league," Applied Economics, Taylor & Francis Journals, vol. 50(46), pages 4925-4936, October.
    13. Sung, Ming-Chien & McDonald, David C.J. & Johnson, Johnnie E.V. & Tai, Chung-Ching & Cheah, Eng-Tuck, 2019. "Improving prediction market forecasts by detecting and correcting possible over-reaction to price movements," European Journal of Operational Research, Elsevier, vol. 272(1), pages 389-405.
    14. Daniel C. Hickman, 2020. "Efficiency in the madness? examining the betting market for the ncaa men’s basketball tournament," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 44(3), pages 611-626, July.
    15. Jason P. Berkowitz & Craig A. Depken, 2018. "A rational asymmetric reaction to news: evidence from English football clubs," Review of Quantitative Finance and Accounting, Springer, vol. 51(2), pages 347-374, August.
    16. Paul Gift, 2019. "Performance Bonuses and Effort: Evidence from Fight Night Awards in Mixed Martial Arts," IJFS, MDPI, vol. 7(1), pages 1-15, February.
    17. Montone, Maurizio, 2021. "Optimal pricing in the online betting market," Journal of Economic Behavior & Organization, Elsevier, vol. 186(C), pages 344-363.
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    19. Berkowitz, Jason P. & Depken, Craig A. & Gandar, John M., 2017. "A favorite-longshot bias in fixed-odds betting markets: Evidence from college basketball and college football," The Quarterly Review of Economics and Finance, Elsevier, vol. 63(C), pages 233-239.

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