Consumption benefits and gambling: Evidence from the NCAA basketball betting market
AbstractThe utility of gambling model posits that consumption benefits lead rational agents to gamble when faced with negative expected financial returns. We analyze the determinants of bet volume and dollars bet on NCAA basketball games from three on-line sports books to test the predictions of this model. Betting action depends on television coverage, team quality, and the expected closeness of the contest. Our results support the notion that consumption benefits, not financial gain, motivate gambling. Preferences of bettors appear similar to those of sports fans, suggesting that models of gamblers as wealth-maximizing investors may not explain observed betting behavior.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Psychology.
Volume (Year): 39 (2013)
Issue (Month): C ()
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Web page: http://www.elsevier.com/locate/joep
Gambling; Sports betting; Bet volume; Dollars bet; Consumption value;
Other versions of this item:
- Humphreys, Brad & Paul, Rodney & Weinbach, Andrew, 2010. "Consumption Benefits and Gambling: Evidence From the NCAA Basketball Betting Market," Working Papers 2010-7, University of Alberta, Department of Economics.
- G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
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