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Is there an optimistic bias on betting markets?

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  • Page, Lionel

Abstract

Bettors are subject to an optimistic bias when betting on the team they support. This paper shows that this individual bias does not affect betting odds on British teams in association football (soccer), as it is often argued.

Suggested Citation

  • Page, Lionel, 2009. "Is there an optimistic bias on betting markets?," Economics Letters, Elsevier, vol. 102(2), pages 70-72, February.
    • Handle: RePEc:eee:ecolet:v:102:y:2009:i:2:p:70-72
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    Cited by:

    1. Oliver Merz & Raphael Flepp & Egon Franck, 2019. "Does sentiment harm market efficiency? An empirical analysis using a betting exchange setting," Working Papers 381, University of Zurich, Department of Business Administration (IBW).
    2. Luca De Angelis & J. James Reade, 2022. "Home advantage and mispricing in indoor sports’ ghost games: the case of European basketball," Economics Discussion Papers em-dp2022-01, Department of Economics, University of Reading.
    3. Bouwman, Christa H.S., 2014. "Managerial optimism and earnings smoothing," Journal of Banking & Finance, Elsevier, vol. 41(C), pages 283-303.
    4. Flepp, Raphael & Nüesch, Stephan & Franck, Egon, 2017. "The liquidity advantage of the quote-driven market: Evidence from the betting industry," The Quarterly Review of Economics and Finance, Elsevier, vol. 64(C), pages 306-317.
    5. Raphael Flepp & Stephan Nüesch & Egon Franck, 2016. "Does Bettor Sentiment Affect Bookmaker Pricing?," Journal of Sports Economics, , vol. 17(1), pages 3-11, January.
    6. Butler, David & Butler, Robert & Eakins, John, 2021. "Expert performance and crowd wisdom: Evidence from English Premier League predictions," European Journal of Operational Research, Elsevier, vol. 288(1), pages 170-182.
    7. repec:cup:judgdm:v:12:y:2017:i:2:p:168-172 is not listed on IDEAS
    8. Rostislav Staněk, 2017. "Home bias in sport betting: Evidence from Czech betting market," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 12(2), pages 168-172, March.
    9. David Boto-Garcìa & Alessandro Bucciol & Luca Zarri, 2020. "Managerial Beliefs and Firm Performance: Field Evidence from Professional Elite Soccer," Working Papers 19/2020, University of Verona, Department of Economics.
    10. Luca De Angelis & J. James Reade, 2023. "Home advantage and mispricing in indoor sports’ ghost games: the case of European basketball," Annals of Operations Research, Springer, vol. 325(1), pages 391-418, June.

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