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Bookmakers’ mispricing of the disappeared home advantage in the German Bundesliga after the COVID-19 break

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  • David Winkelmann
  • Christian Deutscher
  • Marius Ötting

Abstract

The outbreak of COVID-19 in March 2020 led to a shutdown of economic activities in Europe. This included the sports sector since public gatherings were prohibited. The German Bundesliga was among the first sport leagues realizing a restart without spectators. Several recent studies suggest that the home advantage of teams eroded for the remaining matches. Our paper analyses the reaction by bookmakers to the disappearance of such home advantage. We show that bookmakers had problems to adjust the betting odds in accordance with the disappeared home advantage, opening opportunities for profitable betting strategies.

Suggested Citation

  • David Winkelmann & Christian Deutscher & Marius Ötting, 2021. "Bookmakers’ mispricing of the disappeared home advantage in the German Bundesliga after the COVID-19 break," Applied Economics, Taylor & Francis Journals, vol. 53(26), pages 3054-3064, June.
    • Handle: RePEc:taf:applec:v:53:y:2021:i:26:p:3054-3064
    DOI: 10.1080/00036846.2021.1873234
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    Cited by:

    1. Luca De Angelis & J. James Reade, 2022. "Home advantage and mispricing in indoor sports’ ghost games: the case of European basketball," Economics Discussion Papers em-dp2022-01, Department of Economics, University of Reading.
    2. Kai Fischer & Justus Haucap, 2022. "Home advantage in professional soccer and betting market efficiency: The role of spectator crowds," Kyklos, Wiley Blackwell, vol. 75(2), pages 294-316, May.
    3. Carl Singleton & Alex Bryson & Peter Dolton & James Reade & Dominik Schreyer, 2022. "Economics lessons from sports during the COVID-19 pandemic," Chapters, in: Paul M. Pedersen (ed.), Research Handbook on Sport and COVID-19, chapter 2, pages 9-18, Edward Elgar Publishing.
    4. Pascal Flurin Meier & Raphael Flepp & Egon Franck, 2021. "Are sports betting markets semistrong efficient? Evidence from the COVID-19 pandemic," Working Papers 387, University of Zurich, Department of Business Administration (IBW).
    5. David Winkelmann & Marius Ötting & Christian Deutscher & Tomasz Makarewicz, 2024. "Are Betting Markets Inefficient? Evidence From Simulations and Real Data," Journal of Sports Economics, , vol. 25(1), pages 54-97, January.
    6. Alex Bryson & Peter Dolton & J. James Reade & Dominik Schreyer & Carl Singleton, 2021. "What we can learn about economics from professional sport during Covid-19," National Institute of Economic and Social Research (NIESR) Discussion Papers 525, National Institute of Economic and Social Research.
    7. Tadgh Hegarty, 2021. "Information and price efficiency in the absence of home crowd advantage," Applied Economics Letters, Taylor & Francis Journals, vol. 28(21), pages 1902-1907, December.
    8. Luca De Angelis & J. James Reade, 2023. "Home advantage and mispricing in indoor sports’ ghost games: the case of European basketball," Annals of Operations Research, Springer, vol. 325(1), pages 391-418, June.
    9. D'avid Zolt'an Szab'o & Diego Andr'es P'erez, 2021. "Does home advantage without crowd exist in American football?," Papers 2104.11595, arXiv.org.

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