National Sentiment and Economic Behavior

Sebastian Braun and Michael Kvasnicka

Journal of Sports Economics, 2013, vol. 14, issue 1, 45-64

Abstract: National sentiment can have major implications for individual consumption and investment choices but has been researched little by economists. This article studies how national sentiment in the form of a perception or loyalty bias of bettors may affect pricing patterns on national wagering markets for European football. The authors show theoretically that both biases can be profitably exploited by domestic bookmakers through price adjustment. Analyzing empirically a unique data set of betting odds from online bookmakers in Europe, the authors find evidence of systematic biases in the pricing of own national teams, deviations that can be explained by the aforementioned two biases.

Keywords: national sentiment; betting markets; home bias; investment (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/1527002511414718 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:jospec:v:14:y:2013:i:1:p:45-64

DOI: 10.1177/1527002511414718

Access Statistics for this article

More articles in Journal of Sports Economics
Bibliographic data for series maintained by SAGE Publications ().