IDEAS home Printed from https://ideas.repec.org/a/bla/jbfnac/v28y2001-01i1-2p231-248.html
   My bibliography  Save this article

Testing Efficiency Across Markets: Evidence from the NCAA Basketball Betting Market

Author

Listed:
  • L. Lee Colquitt

    (Auburn University, Alabama, USA)

  • Norman H. Godwin

    (Auburn University, Alabama, USA)

  • Steven B. Caudill

    (Auburn University, Alabama, USA)

Abstract

This study utilizes the National Collegiate Athletic Association basketball point spread betting market to investigate whether differences in information availability across markets result in different relative efficiencies of price formation within those markets. Using intra-conference games of various conferences as clearly defined markets, we show that these markets are efficient given the information available in those markets. However, we also show that regression error variances are significantly smaller (greater) for those conferences with greater (lesser) information availability. This evidence supports previous stock market research suggesting that differential fundamental information availability across stock markets results in differential departures from equilibrium values. Copyright Blackwell Publishers Ltd 2001.

Suggested Citation

  • L. Lee Colquitt & Norman H. Godwin & Steven B. Caudill, 2001. "Testing Efficiency Across Markets: Evidence from the NCAA Basketball Betting Market," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 28(1-2), pages 231-248.
  • Handle: RePEc:bla:jbfnac:v:28:y:2001-01:i:1-2:p:231-248
    as

    Download full text from publisher

    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/1468-5957.00372
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Krieger, Kevin & Fodor, Andy, 2013. "Price movements and the prevalence of informed traders: The case of line movement in college basketball," Journal of Economics and Business, Elsevier, vol. 68(C), pages 70-82.
    2. Berkowitz, Jason P. & Depken, Craig A. & Gandar, John M., 2015. "Information and accuracy in pricing: Evidence from the NCAA men׳s basketball betting market," Journal of Financial Markets, Elsevier, vol. 25(C), pages 16-32.
    3. Colquitt, L. Lee & Godwin, Norman H. & Swidler, Steve, 2004. "Betting on long shots in NCAA basketball games and implications for skew loving behavior," Finance Research Letters, Elsevier, vol. 1(2), pages 119-126, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jbfnac:v:28:y:2001-01:i:1-2:p:231-248. 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: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0306-686X .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.