Tim Larsen (Brigham Young University - Utah) Joe Price (Brigham Young University - Utah) Justin Wolfers (The Wharton School, University of Pennsylvania/ CEPR/ IZA/ NBER)
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Recent studies have documented the existence of an own-race bias on the part of sports officials. In this paper we explore the implications of these biases on betting markets. We use data from the 1991/92 - 2004/05 NBA regular seasons to show that a betting strategy exploiting own-race biases by referees would systematically beat the spread.
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