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National Sentiment and Economic Behavior

Author

Listed:
  • Sebastian Braun
  • Michael Kvasnicka

Abstract

National sentiment can have major implications for individual consumption and investment choices but has been researched little by economists. This article studies how national sentiment in the form of a perception or loyalty bias of bettors may affect pricing patterns on national wagering markets for European football. The authors show theoretically that both biases can be profitably exploited by domestic bookmakers through price adjustment. Analyzing empirically a unique data set of betting odds from online bookmakers in Europe, the authors find evidence of systematic biases in the pricing of own national teams, deviations that can be explained by the aforementioned two biases.

Suggested Citation

  • Sebastian Braun & Michael Kvasnicka, 2013. "National Sentiment and Economic Behavior," Journal of Sports Economics, , vol. 14(1), pages 45-64, February.
  • Handle: RePEc:sae:jospec:v:14:y:2013:i:1:p:45-64
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    File URL: http://jse.sagepub.com/content/14/1/45.abstract
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    Cited by:

    1. repec:eee:ecmode:v:76:y:2019:i:c:p:128-134 is not listed on IDEAS
    2. Vincent Hogan & Patrick Massey & Shane Massey, 2013. "Competitive Balance and Match Attendance in European Rugby Union Leagues," The Economic and Social Review, Economic and Social Studies, vol. 44(4), pages 425-446.
    3. Vincent (Vincent Peter) Hogan & Patrick Massey & Shane Massey, 2014. "Analysing Match Attendance in the European Rugby Cup," Working Papers 201412, School of Economics, University College Dublin.
    4. Arne Feddersen & Brad R. Humphreys & Brian P. Soebbing, 2017. "Sentiment Bias And Asset Prices: Evidence From Sports Betting Markets And Social Media," Economic Inquiry, Western Economic Association International, vol. 55(2), pages 1119-1129, April.
    5. 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.
    6. repec:sae:jospec:v:19:y:2018:i:4:p:455-472 is not listed on IDEAS
    7. 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.

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