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DO GAMBLERS THINK THAT TEAMS TANK? EVIDENCE FROM THE NBA
Author(s) -
SOEBBING BRIAN P.,
HUMPHREYS BRAD R.
Publication year - 2013
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.2011.00298.x
Subject(s) - basketball , incentive , league , economics , point (geometry) , perception , affect (linguistics) , advertising , microeconomics , marketing , business , psychology , physics , geometry , mathematics , archaeology , communication , astronomy , neuroscience , history
A growing body of literature indicates that sports teams face incentives to lose games at the end of the season. This incentive arises from a league's entry draft policy. We use data from betting markets to confirm the existence of tanking, or the perception of tanking, in the National Basketball Association (NBA). Results from a Seemingly Unrelated Regression (SUR) model of point spreads and point differences in NBA games indicate that betting markets believe that tanking takes place in the NBA, even though the evidence that tanking actually exists is mixed. Other NBA policy changes also affect betting market outcomes . ( JEL D0, L0)