Media Attention and Betting Markets

Stefan Legge () and Lukas Schmid ()

No 1521, Economics Working Paper Series from University of St. Gallen, School of Economics and Political Science

Abstract: This paper investigates whether biased media attention affects perceptions about future events. We use data on World Cup tournaments in alpine skiing for the period of 1992-2014 and exploit close races as a source of randomness for ranking positions. Our results document that ranking positions generate sharp discontinuities in media attention even in close races. However, both regression discontinuity and instrumental variables estimates reveal that biased media attention neither affects prices nor quantities in the betting market. We conduct a series of robustness tests to explore the sensitivity of our results.

Keywords: Betting; Rankings; Media Attention (search for similar items in EconPapers)
JEL-codes: D03 L83 M50 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2015-10
New Economics Papers: this item is included in nep-cul
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: Media attention and betting markets (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:usg:econwp:2015:21

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