Document Type
Working Paper
Publication Date
9-2013
College/Unit
Chambers College of Business and Economics
Document Number
13-07
Department/Program/Center
Economics
Abstract
Previous research using attendance-based proxies for the number of investors with sentiment bias supported the presence of investor sentiment in sports betting markets. We use data from social media (Facebook "Likes") to proxy for participants with investor sentiment and analyze variation in prices set by bookmakers for evidence of influence from investor sentiment. Based on prices and outcomes over two seasons in seven professional sports leagues in Europe and North America, we develop new evidence that asset prices reflect the presence of investor sentiment in these markets, or that bookmakers believe they exist, by offering favorable betting lines for popular teams. Favorable prices do not translate into a higher probability of winning a bet.
Digital Commons Citation
Feddersen, Arne; Soebbing, Brian P.; and Humphreys, Brad R., "Sentiment Bias and Asset Prices: Evidence from Sports Betting Markets and Social Media" (2013). Economics Faculty Working Papers Series. 87.
https://researchrepository.wvu.edu/econ_working-papers/87