Short selling is a procedure with which few NFL bettors are familiar. This deficiency causes a reluctance to sell, creates a supply shortage of bets on Team A, and results in an unwarranted price increase of bets on Team A. The result is that NFL contracts expire at $0 more often than expected, and the sellers cash in.
Originally from the pit at Tradesports(TM) (RIP 2008) ... on trading, risk, economics, politics, policy, sports, culture, entertainment, and whatever else might increase awareness, interest and liquidity of prediction markets
Sunday, August 19, 2007
Price biases in Tradesports NFL trading
According to Rick Borghesi:
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