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 InfoPaper provided by University of Alberta, Department of Economics in its series Working Papers with number 2010-13.
Length: 21 pages
Date of creation: 25 Aug 2010
Date of revision:
incentives; betting markets; tanking;
Other versions of this item:
- Brian P. Soebbing & Brad R. Humphreys, 2013. "Do Gamblers Think That Teams Tank? Evidence From The Nba," Contemporary Economic Policy, Western Economic Association International, vol. 31(2), pages 301-313, 04.
- D49 - Microeconomics - - Market Structure and Pricing - - - Other
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
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