IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v64y2011i3p299-305.html
   My bibliography  Save this article

Sportsbooks and politicians: Place your bet!

Author

Listed:
  • Raventós, Pedro
  • Zolezzi, Sandro

Abstract

Betting on sports is widespread. Book making can be profitable but the practice is illegal in the United States. The internet allows this activity to move to offshore locations like Costa Rica. The internet also lowers entry barriers and makes pricing more transparent which could lead to hyper competition. Using odds for four World Cup soccer games the case reader can calculate the expected profitability for several bookies (sportsbooks). Price dispersion does not disappear with the internet, even for gambling which entails no movement of merchandise. Strategy is important. Sportsbooks must decide on segments, product mix and geographic scope.

Suggested Citation

  • Raventós, Pedro & Zolezzi, Sandro, 2011. "Sportsbooks and politicians: Place your bet!," Journal of Business Research, Elsevier, vol. 64(3), pages 299-305, March.
    • Handle: RePEc:eee:jbrese:v:64:y:2011:i:3:p:299-305
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148-2963(09)00304-X
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

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

    References listed on IDEAS

    as
    1. Erik Brynjolfsson & Michael D. Smith, 2000. "Frictionless Commerce? A Comparison of Internet and Conventional Retailers," Management Science, INFORMS, vol. 46(4), pages 563-585, April.
    2. Strumpf, Koleman, 2003. "Illegal Sports Bookmakers," Working Papers 181, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    3. Steven D. Levitt, 2004. "Why are gambling markets organised so differently from financial markets?," Economic Journal, Royal Economic Society, vol. 114(495), pages 223-246, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arne Feddersen & Brad R. Humphreys & Brian P. Soebbing, 2018. "Sentiment Bias in National Basketball Association Betting," Journal of Sports Economics, , vol. 19(4), pages 455-472, May.
    2. 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).
    3. Andy Fodor & Michael DiFilippo & Kevin Krieger & Justin Davis, 2013. "Inefficient pricing from holdover bias in NFL point spread markets," Applied Financial Economics, Taylor & Francis Journals, vol. 23(17), pages 1407-1418, September.
    4. Humphreys, Brad R. & Paul, Rodney J. & Weinbach, Andrew P., 2013. "Consumption benefits and gambling: Evidence from the NCAA basketball betting market," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 376-386.
    5. Sebastian Braun & Michael Kvasnicka, 2013. "National Sentiment and Economic Behavior," Journal of Sports Economics, , vol. 14(1), pages 45-64, February.
    6. David Forrest & Robert Simmons, 2008. "Sentiment in the betting market on Spanish football," Applied Economics, Taylor & Francis Journals, vol. 40(1), pages 119-126.
    7. Arscott, Robert, 2022. "Risk management in the shadow economy: Evidence from the sport betting market," Journal of Corporate Finance, Elsevier, vol. 77(C).
    8. Braun, Sebastian & Kvasnicka, Michael, 2013. "National Sentiment and Economic Behavior: Evidence From Online Betting on European Football," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 14(1), pages 45-64.
    9. Andre Boik, 2017. "The empirical effects of competition on third‐degree price discrimination in the presence of arbitrage," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(4), pages 1023-1036, November.
    10. Andrew Weinbach & Rodney J. Paul, 2009. "National television coverage and the behavioural bias of bettors: the American college football totals market," International Gambling Studies, Taylor & Francis Journals, vol. 9(1), pages 55-66, April.
    11. Babur De los Santos & Sergei Koulayev, 2017. "Optimizing Click-Through in Online Rankings with Endogenous Search Refinement," Marketing Science, INFORMS, vol. 36(4), pages 542-564, July.
    12. Edgardo Arturo Ayala Gaytán, 2009. "Social network externalities and price dispersion in online markets," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 1-28, November.
    13. Brett Danaher & Michael D. Smith & Rahul Telang, 2014. "Piracy and Copyright Enforcement Mechanisms," Innovation Policy and the Economy, University of Chicago Press, vol. 14(1), pages 25-61.
    14. Gandal, Neil, 2001. "The dynamics of competition in the internet search engine market," International Journal of Industrial Organization, Elsevier, vol. 19(7), pages 1103-1117, July.
    15. Braun, Sebastian & Kvasnicka, Michael, 2008. "Against All Odds? – National Sentiment and Wagering on European Football," Ruhr Economic Papers 42, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    16. Barge-Gil, Andrés & García-Hiernaux, Alfredo, 2019. "Staking plans in sports betting under unknown true probabilities of the event," MPRA Paper 92196, University Library of Munich, Germany.
    17. Nitin Walia & Mark Srite & Wendy Huddleston, 2016. "Eyeing the web interface: the influence of price, product, and personal involvement," Electronic Commerce Research, Springer, vol. 16(3), pages 297-333, September.
    18. Egon Franck & Erwin Verbeek & Stephan Nüesch, 2011. "Sentimental Preferences and the Organizational Regime of Betting Markets," Southern Economic Journal, John Wiley & Sons, vol. 78(2), pages 502-518, October.
    19. Moraga-Gonzalez, Jose L. & Wildenbeest, Matthijs R., 2011. "Comparison sites," IESE Research Papers D/933, IESE Business School.
      • Jose Luis Moraga-Gonzalez & Matthijs R. Wildenbeest, 2011. "Comparison Sites," Working Papers 2011-04, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    20. Michael R. Baye & John Morgan & Patrick Scholten, 2004. "Price Dispersion In The Small And In The Large: Evidence From An Internet Price Comparison Site," Journal of Industrial Economics, Wiley Blackwell, vol. 52(4), pages 463-496, December.

    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:eee:jbrese:v:64:y:2011:i:3:p:299-305. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.