Information and accuracy in pricing: Evidence from the NCAA men׳s basketball betting market

Jason P. Berkowitz, Craig Depken and John M. Gandar

Journal of Financial Markets, 2015, vol. 25, issue C, 16-32

Abstract: In this paper, we test whether accuracy in the wagering markets for NCAA Division I men׳s basketball improves when there are more betting lines available for a given game. The empirical evidence indicates that when the money line is offered, it has no impact on the accuracy of the sides line as it is a redundant security, but the offering of the totals line impacts the accuracy of the sides line. We interpret this as evidence that the totals line provides additional information to uninformed bettors that improves the accuracy of the sides line in its role as a price.

Keywords: Efficient market hypothesis; Market efficiency; Security price; Betting market (search for similar items in EconPapers)
JEL-codes: G13 G14 L83 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finmar:v:25:y:2015:i:c:p:16-32

DOI: 10.1016/j.finmar.2015.06.003

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