IDEAS home Printed from https://ideas.repec.org/a/nye/nyervw/v43y2012i1p70-74.html
   My bibliography  Save this article

Basketball Market Efficiency and the Big Dog Bias

Author

Listed:
  • Ladd Kochman
  • Randy Goodwin

Abstract

A betting rule is devised to profit from an alleged unwillingness of strong favorites in the National Basketball Association to cover large point spreads. Imaginary wagers placed on NBA underdogs awarded 10+ points by Las Vegas oddsmakers produced a significantly nonrandom wins-to-bets ratio of 53.4 percent during the five consecutive seasons ending in 2007. The failure to generate a W/B ratio of at least 55.4 percent over the 758 games meeting our point spread constraint precludes any claim of profitability.

Suggested Citation

  • Ladd Kochman & Randy Goodwin, 2012. "Basketball Market Efficiency and the Big Dog Bias," New York Economic Review, New York State Economics Association (NYSEA), vol. 43(1), pages 70-74.
  • Handle: RePEc:nye:nyervw:v:43:y:2012:i:1:p:70-74
    as

    Download full text from publisher

    File URL: http://www.nyecon.net/nysea/publications/nyer/2012/NYER_2012_p070.pdf
    Download Restriction: no

    File URL: http://www.nyecon.net/nysea/publications/nyer/2012/NYER_2012_p070.html
    Download Restriction: no

    References listed on IDEAS

    as
    1. Rodney J. Paul & Andrew P. Weinbach, 2005. "Bettor Misperceptions in the NBA," Journal of Sports Economics, , vol. 6(4), pages 390-400, November.
    Full references (including those not matched with items on IDEAS)

    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:nye:nyervw:v:43:y:2012:i:1:p:70-74. 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: (Eryk Wdowiak). General contact details of provider: http://edirc.repec.org/data/nyseaea.html .

    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 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.

    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.