Market efficiency and the NHL totals betting market: Is there an under bias?
Accounting and Finance
Racetrack and sports betting markets have been researched extensively with respect to the question of market efficiency. In contrast to the consistently observed favouritelongshot bias found in racetrack betting markets, it has been shown that gamblers in the market for Major League Baseball games reveal the opposite behaviour. This paper updates the previous study with ten years of additional data for the 199099 seasons. The strength of the reverse favouritelongshot bias is virtually identical to the original paper. The result suggests that, contrary to most reported inefficiencies in gambling markets, this bias appears to be permanent.
Woodland, L. M., & Woodland, B. M. (2010). Market efficiency and the NHL totals betting market: Is there an under bias? Economics Bulletin, 30(4), 3122–3127.