IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Sportsbook Behavior in the NCAA Football Betting Market: Tests of the Traditional and Levitt Models of Sportsbook Behavior

  • Rodney J. Paul

    (St. Bonaventure University)

  • Andrew P. Weinbach

    (Coastal Carolina University)

The predictions of the traditional balanced-book sportsbook model and the alternative Levitt model of sportsbook behavior are tested using actual betting percentages on the favorite/underdog and over/under for NCAA Football. Sportsbooks are found to not balance betting dollars, which is in contradiction to the assumptions of the traditional models of sportsbook behavior. In the pointspread market, more bets are placed on the favorite in contests with road favorites and in games with higher pointspreads. In the totals market, more bets are placed on the over as the total increases and in games on television. Some support is found for the Levitt model of sportsbook behavior, as sportsbooks appear to price to maximize profits when the behavioral biases of bettors are clear, such as games with road favorites and games with the highest pointspreads and totals. In all other contests, however, the sportsbook appears to price as a forecast, as each proposition wins half of the time, even in the presence of betting imbalances.

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://www.ingentaconnect.com/content/ubpl/jpm/2009/00000003/00000002/art00002
Download Restriction: no

Article provided by University of Buckingham Press in its journal Journal of Prediction Markets.

Volume (Year): 3 (2009)
Issue (Month): 2 (August)
Pages: 21-37

as
in new window

Handle: RePEc:buc:jpredm:v:3:y:2009:i:2:p:21-37
Contact details of provider: Web page: http://www.ubpl.co.uk/

Order Information: Web: http://www.predictionmarketjournal.com/index_files/Page418.htm Email:


No references listed on IDEAS
You can help add them by filling out this form.

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

When requesting a correction, please mention this item's handle: RePEc:buc:jpredm:v:3:y:2009:i:2:p:21-37. 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: (Victor Matheson, College of the Holy Cross)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.