Market efficiency and profitable wagering in the National Hockey League: Can bettors score on longshots?
Document Type
Article
Publication Date
2001
Department
Accounting and Finance
Abstract
There is evidence that stock market investors overreact to stocks that have been identified as winners and losers. This article examines whether contrarian strategies of selling (betting against) winners and buying (betting on) losers are successful in the gambling market for professional football. Contrary to the stock market, National Football League betting is found to be highly efficient. Because risk is constant for all football wagers, results support the argument that abnormal returns paid to contrarian stock market investors may be attributed to the higher risk incurred.
DOI
Citation
Woodland, L. M., & Woodland, B. M. (2001). Market efficiency and profitable wagering in the National Hockey League: Can bettors score on longshots? Southern Economic Journal, 67(4), 983–995. doi:10.2307/1061582