Sunday, August 19, 2007

Price biases in Tradesports NFL trading

According to Rick Borghesi:
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.

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