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Adjusting Winning-Percentage Standard Deviations and a Measure of Competitive Balance for Home Advantage

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Author Info

  • Trandel Gregory A

    (University of Georgia)

  • Maxcy Joel G

    (University of Georgia)

Abstract

One measure of sports league competitive balance uses a ratio: the standard deviation of team winning percentages is divided by the so-called ideal standard deviation, which assumes a game between evenly-skilled teams is equally likely to be won by either team. In fact, a team is more likely to win when playing at home than when playing on the road. The extent of this advantage differs across sports leagues. Home advantage reduces the variability of season-long team records. Ignoring home advantage biases upward the traditionally measured ideal standard deviation and bias downward the ratio of standard deviations. The authors derive a balanced league standard deviation formula that accounts for home advantage, use it to recompute the ratio of standard deviations for major sports leagues, and consider how the adjustment affects comparisons of competitive balance across those leagues.

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Bibliographic Info

Article provided by De Gruyter in its journal Journal of Quantitative Analysis in Sports.

Volume (Year): 7 (2011)
Issue (Month): 1 (January)
Pages: 1-17

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Handle: RePEc:bpj:jqsprt:v:7:y:2011:i:1:n:1

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Web page: http://www.degruyter.com

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Cited by:
  1. P Dorian Owen & Nicholas King, 2013. "Competitive Balance Measures in Sports Leagues: The Effects of Variation in Season Length," NCER Working Paper Series 92, National Centre for Econometric Research.
  2. Rockerbie, Duane W, 2012. "Exploring inter-league parity in North America: the NBA anomaly," MPRA Paper 43088, University Library of Munich, Germany.
  3. P. Dorian Owen, 2013. "Measurement of Competitive Balance and Uncertainty of Outcome," Working Papers 1311, University of Otago, Department of Economics, revised Aug 2013.
  4. Andrés Picazo-Tadeo & Francisco Gónzalez-Gómez & Jorge Guardiola Wanden-Berghe, 2011. "Referee home bias due to social pressure. Evidence from Spanish football," Working Papers 1119, Department of Applied Economics II, Universidad de Valencia.

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