Do Gamblers Think That Teams Tank? Evidence From The Nba
AbstractA growing body of literature indicates that sports teams face incentives to lose games at the end of the season. This incentive arises from league entry draft policy. We use data from betting markets to confirm the existence of tanking, or the perception of tanking, in the NBA. Results from a SUR model of point spreads and point differences in NBA games indicate that betting markets believe that tanking takes place in the NBA, even though the evidence that tanking actually exists is mixed. NBA policy changes also affect betting market outcomes.
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Bibliographic InfoArticle provided by Western Economic Association International in its journal Contemporary Economic Policy.
Volume (Year): 31 (2013)
Issue (Month): 2 (04)
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Other versions of this item:
- Soebbing, Brian & Humphreys, Brad, 2010. "Do Gamblers Think That Teams Tank? Evidence from the NBA," Working Papers 2010-13, University of Alberta, Department of Economics.
- D49 - Microeconomics - - Market Structure and Pricing - - - Other
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
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- Arne Feddersen & Brad Humphreys & Brian Soebbing, 2013. "Sentiment Bias in National Basketball Association Betting," Working Papers 13-03, Department of Economics, West Virginia University.
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