Price setting in the nba

Price setting in the  nba Price setting in the  nba - Start

2018-11-08 3K 3 0 0

Price setting in the nba - Description

gambling Market. Tests of the . levitt. model of sportsbook behavior. Rodney J. Paul & Andrew P. . Weinbach. International Journal of Sports Finance, 2008. Overview. In 2004 . steven. D. . levitt. ID: 721449 Download Presentation

Download Presentation

Price setting in the nba




Download Presentation - The PPT/PDF document "Price setting in the nba" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.



Presentations text content in Price setting in the nba

Slide1

Price setting in the nba gambling Market

Tests of the levitt model of sportsbook behavior

Rodney J. Paul & Andrew P.

Weinbach

International Journal of Sports Finance, 2008

Slide2

Overview

In 2004 steven D. levitt challenged the traditional view of sportsbook behavior

Levitt sportsbooks use their knowledge of common bettor biases to set prices

Setting biased

pointspreads

LESS POPULAR SIDE OF PROPOSITION WINS MORE THAN 50%

Slide3

purpose

Test

levitt

model of sportsbook behavior in the

nba

Levitt sportsbooks

in

the

nfl

do not set prices to clear markets (commonly Assumed)

Sportsbooks

in

nfl

set prices to maximize profits

Slide4

theory

Traditional theoryGoal of sportsbook is to profit without riskSet a pointspread

that attracts same amount of wagering dollar

Over/under Equal & favorite/underdog equal

Levitt theory

Sportsbook incorporate common bettor biases

Sportsbooks are willing to accept uneven betting dollars

Willing to accept loss on individual game basis for higher overall returns

Slide5

Background / Method - nflJournal of prediction markets

Levitt model

Used data from a betting tournament

Paul and

weinbach

Used actual sportsbook data

Every game of the 2006

nfl

season

Slide6

results

ConsistentBetting did not appear to be balanced Favorites & Road favorites The percentage bet on the favorite became greater as the

pointspread

on the favorite increased

Slide7

Method - nba

Betting percentage data Favorite & underdog Pointspread market

OVER & UNDER

TOTALS MARKET

Slide8

Method – nba (continued)

Data Gathered from sports Insights Provides data from four sports books

All

nba

games from 2004-05 to 2006-07 seasons

Slide9

Results - similarities

Bets were not evenly balanced in pointspread or total marketsBigger favorites attract more bets on the favorite

Slide10

Results – key differences

Betting against public sentimentDid not generate profitsAlthough betting dollars were imbalanced win percentages 50/50 proposition

Slide11

conclusion

Nba market is a lot smaller and less liquid than nfl marketSPORTSBOOKS ARE NOT AS WILLING TO EXPLOIT KNOWN BETTING BIASES AS THEY ARE IN THE MARKET FOR THE NFL

CONTRARY TO LEVITT BELIEF

SPORTSBOOKS ARE NOT ATTEMPTING TO EXPLOUT BETTING BIASES N EVERY CASE TO MAXIMIZE PROFITS

Slide12

QUESTIONS?

Any questions


About DocSlides
DocSlides allows users to easily upload and share presentations, PDF documents, and images.Share your documents with the world , watch,share and upload any time you want. How can you benefit from using DocSlides? DocSlides consists documents from individuals and organizations on topics ranging from technology and business to travel, health, and education. Find and search for what interests you, and learn from people and more. You can also download DocSlides to read or reference later.