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Gandar, Zuber, and Russo are from the Department of Economics, University of North Carolina at Charlotte. O'Brien is from the Department of Finance, University of Connecticut. The authors are grateful to the finance workshops at the Universities of Connecticut and North Carolina at Chapel Hill and to George Ignatin, Michael Roxborough, Chris Piros, Hal Stern, Steven Swidler, Gene Webb, and an anonymous referee for helpful discussions and comments and to Craig Brown and John Griffith for assistance in data collection and processing
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Testing Rationality in the Point Spread Betting Market
Article first published online: 30 APR 2012
DOI: 10.1111/j.1540-6261.1988.tb02617.x
1988 The American Finance Association
Additional Information
How to Cite
GANDAR, J., ZUBER, R., O'BRIEN, T. and RUSSO, B. (1988), Testing Rationality in the Point Spread Betting Market. The Journal of Finance, 43: 995–1008. doi: 10.1111/j.1540-6261.1988.tb02617.x
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Gandar, Zuber, and Russo are from the Department of Economics, University of North Carolina at Charlotte. O'Brien is from the Department of Finance, University of Connecticut. The authors are grateful to the finance workshops at the Universities of Connecticut and North Carolina at Chapel Hill and to George Ignatin, Michael Roxborough, Chris Piros, Hal Stern, Steven Swidler, Gene Webb, and an anonymous referee for helpful discussions and comments and to Craig Brown and John Griffith for assistance in data collection and processing
Publication History
- Issue published online: 30 APR 2012
- Article first published online: 30 APR 2012
- Abstract
- References
- Cited By
ABSTRACT
This paper presents empirical tests of market rationality using data from the point spread betting market on National Football League games. Data from this market avoid many common pitfalls of tests of rationality in conventional financial markets. The authors test for rationality with two types of tests, statistical and economic. Results of the tests reveal that the statistical tests cannot reject market rationality while the economic tests do reject market rationality.