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Sentiment in the betting market on Spanish football

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Published
<mark>Journal publication date</mark>2008
<mark>Journal</mark>Applied Economics
Issue number1
Volume40
Number of pages8
Pages (from-to)119-126
Publication StatusPublished
<mark>Original language</mark>English

Abstract

We employ a sample of over 3000 bets available on matches from the top tier of Spanish football in an examination of the efficiency of betting odds offered in the on-line betting market. Odds appear to be influenced by the relative number of fans of each club in a match, with supporters of the more popular team offered more favourable terms on their wagers. We report similar findings for a sample of games from Scotland. The results contrast with studies of American sports betting markets but are consistent with competitive behaviour by profit maximizing bookmakers in a market where bettors can choose between several operators.