The Search for Informed Traders in the Totals Betting Market for National Basketball Association Games

John M. Gandar, Richard A. Zuber and William H. Dare
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John M. Gandar: University of North Carolina at Charlotte
Richard A. Zuber: University of North Carolina at Charlotte
William H. Dare: Oklahoma State University

Journal of Sports Economics, 2000, vol. 1, issue 2, 177-186

Abstract: A recent article on line changes in the point spread betting market for National Basketball Association games found evidence that trading incorporates information into price. This article examines a closely related but previously unexamined betting market—the betting market for the total points scored in a game. The authors find that closing totals lines are more accurate forecasts of total points scored than are opening totals lines. It is shown that line changes move betting lines in the correct direction and by the appropriate magnitude to eliminate biases in opening totals lines. Line changes in this betting market, like those in the point spread betting market, cause prices to more accurately reflect fundamental values.

Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:sae:jospec:v:1:y:2000:i:2:p:177-186

DOI: 10.1177/152700250000100205

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