Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/105160
Authors: 
Feess, Eberhard
Müller, Helge
Schumacher, Christoph
Year of Publication: 
2014
Citation: 
[Journal:] Business Research [ISSN:] 2198-2627 [Publisher:] Springer [Place:] Heidelberg [Volume:] 7 [Year:] 2014 [Issue:] 2 [Pages:] 217-234
Abstract: 
With a unique data set from New Zealand which allows us to assign each bet to individual bettors, we analyze the impact of experience on behavior and success in non-parimutuel (fixed odds) sports betting markets. We find that experienced bettors bet more on favorites than inexperienced bettors do. Average returns, which we use as success measure, increase with experience even after controlling for odds. This means that the higher return of experienced bettors cannot only be attributed to betting more on favorites. To get a more detailed picture, we divide the data set into ten equally large subgroups, sorted by experience. We find that odds decrease from subgroup to subgroup, while success consistently increases. This shows that the positive impact of experience is not mainly driven by professional bettors.
Subjects: 
Behavioral economics
Behavioral finance
Favorite-longshot bias
Betting markets
Learning in financial markets
JEL: 
D14
D81
G11
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/2.0/
Document Type: 
Article

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