Advanced Search
MyIDEAS: Login

On "Arbitage" and Market Efficiency: An Examination of NFL Wagering

Contents:

Author Info

  • Mark Burkey

Abstract

For several decades researchers have searched for possible inefficiencies in sports gambling markets. Most profitable strategies have failed to produce profits over the long run. The one consistently profitable strategy that has been studied extensively involves taking advantage of differences between contracts offered in different regional gambling markets. The main purpose of this paper is to explain why and how these differences affect the profitability of wagers. I describe two ways that one could take advantage of these different contracts, loosely defining one of these opportunities as "arbitrage." This paper examines the circumstances under which inter-market gambles in the NFL can be made with an expected profit. Of course, it is expected that as with all arbitrage opportunities, such circumstances are expected to be rare and short-lived, except when betting against a local team.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://nysea.bizland.com/nysea/publications/nyer/2005/NYER_2005_p013.pdf
Download Restriction: no

File URL: http://nysea.bizland.com/nysea/publications/nyer/2005/NYER_2005_p013.html
Download Restriction: no

Bibliographic Info

Article provided by New York State Economics Association (NYSEA) in its journal New York Economic Review.

Volume (Year): 36 (2005)
Issue (Month): 1 ()
Pages: 13-28

as in new window
Handle: RePEc:nye:nyervw:v:36:y:2005:i:1:p:13-28

Contact details of provider:
Web page: http://nysea.bizland.com/
More information through EDIRC

Related research

Keywords:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Lyn D. Pankoff, 1968. "Market Efficiency and Football Betting," The Journal of Business, University of Chicago Press, vol. 41, pages 203.
  2. Gandar, John, et al, 1988. " Testing Rationality in the Point Spread Betting Market," Journal of Finance, American Finance Association, vol. 43(4), pages 995-1008, September.
  3. Bill M. Woodland & Linda M. Woodland, 2000. "Testing Contrarian Strategies in the National Football League," Journal of Sports Economics, , vol. 1(2), pages 187-193, May.
  4. Asch, Peter & Malkiel, Burton G. & Quandt, Richard E., 1982. "Racetrack betting and informed behavior," Journal of Financial Economics, Elsevier, vol. 10(2), pages 187-194, July.
  5. P. Tryfos & S. Casey & S. Cook & G. Leger & B. Pylypiak, 1984. "The Profitability of Wagering on NFL Games," Management Science, INFORMS, vol. 30(1), pages 123-132, January.
  6. Zuber, Richard A & Gandar, John M & Bowers, Benny D, 1985. "Beating the Spread: Testing the Efficiency of the Gambling Market for National Football League Games," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 800-806, August.
  7. Woodland, Bill M & Woodland, Linda M, 1991. "The Effects of Risk Aversion on Wagering: Point Spread versus Odds," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 638-53, June.
  8. Pope, Peter F & Peel, David A, 1989. "Information, Prices and Efficiency in a Fixed-Odds Betting Market," Economica, London School of Economics and Political Science, vol. 56(223), pages 323-41, August.
  9. Gray, Philip K & Gray, Stephen F, 1997. " Testing Market Efficiency: Evidence from the NFL Sports Betting Market," Journal of Finance, American Finance Association, vol. 52(4), pages 1725-37, September.
  10. Woodland, Linda M & Woodland, Bill M, 1994. " Market Efficiency and the Favorite-Longshot Bias: The Baseball Betting Market," Journal of Finance, American Finance Association, vol. 49(1), pages 269-79, March.
  11. Roger C. Vergin & Michael Scriabin, 1978. "Winning Strategies for Wagering on National Football League Games," Management Science, INFORMS, vol. 24(8), pages 809-818, April.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:nye:nyervw:v:36:y:2005:i:1:p:13-28. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Eryk Wdowiak).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.