Market Efficiency in the Baseball Betting Market: The Case of Pete Rose
Working Papers Rutgers University, Newark from Department of Economics, Rutgers University, Newark
In this paper the betting on baseball games from April 8, 1987 to May 12, 1987 attributed to Pete Rose in the Dowd Report to the Commissioner of Baseball is analyzed. The results show Rose lost $4,200 betting on the Cincinnati Reds, the team which he managed; $36,000 betting on other teams in the National League, and $7,000 on his American League wagers. These losses, which include about $20,000 to $25,000 in transaction fees are small relative to the $450,000 in winning and losing bets (including the transaction fees) and are consistent with an informational efficient market. Assuming these bets are Rose's, his expertise (24 years as a player, 4 years as a manager, major league leader in games played) was not an advantage when betting on his own team, on other teams in his league that he studied and competed against, or on teams in the other major league.
Keywords: Pete Rose; sports betting; market efficiency (search for similar items in EconPapers)
JEL-codes: G14 L83 (search for similar items in EconPapers)
Pages: 5 pages
New Economics Papers: this item is included in nep-spo
References: View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.ncas.rutgers.edu/workingpaper20083 [301 Moved Permanently]--> https://sasn.rutgers.edu/workingpaper20083)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:run:wpaper:2008-003
Access Statistics for this paper
More papers in Working Papers Rutgers University, Newark from Department of Economics, Rutgers University, Newark Contact information at EDIRC.
Bibliographic data for series maintained by Vlad Manole ().