INTERNET SPORTS BOOKS OPERATING IN AN INEFFICIENT MARKETPLACE

George Diemer

doi:10.5750/jgbe.v3i1.539

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Published: Jan 2, 2013

DOI: https://doi.org/10.5750/jgbe.v3i1.539

George Diemer

Department of Economics Temple University

Abstract

This research challenges widely accepted theories regarding sports gambling and the bookmaking industry. Specifically, the assertions by Strumpf (2003) and Levitt (2004) that risk-seeking bookmakers maximize profit rather than minimize exposure is tested. To do so, this research focuses on an area that few scholars have explored: internet sports books. A unique data set to analyze the dynamics of competition in NFL gambling industry is used along with a different estimation technique than other scholars have used: cluster analysis. The results of cluster analysis offer insight into the data structure. An alternate hypothesis regarding the workings of the industry are tested to better understand this data structure.

Issue

Vol. 3 No. 1 (2009)

Section

Articles

References

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