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A Test of Efficiency in NBA Point Spread Markets

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2018, Master of Arts, Miami University, Economics.
Over the past forty years, economists have worked to evaluate efficiency in professional and collegiate sports point spread markets. While some find efficiency, others find exploitable outcomes. This study incorporates new information regarding the markup charged by online sportsbooks, and applies a new econometric technique–the median regression–to evaluate NBA point spread markets. Using data from ten online sportsbooks, I evaluate efficiency using both median and ordinary least squares regressions. When inefficiencies are found, simulations are created to assess potential profitable outcomes. I incorporate strong tests for efficiency, and find profitable betting strategies, which are amplified given the presence of lower markups.
William Even (Advisor)
Michael Lipsitz (Committee Member)
Austin Smith (Committee Member)
41 p.

Recommended Citations

Citations

  • Lust, A. D. (2018). A Test of Efficiency in NBA Point Spread Markets [Master's thesis, Miami University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=miami1533158563565605

    APA Style (7th edition)

  • Lust, Alexander. A Test of Efficiency in NBA Point Spread Markets. 2018. Miami University, Master's thesis. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=miami1533158563565605.

    MLA Style (8th edition)

  • Lust, Alexander. "A Test of Efficiency in NBA Point Spread Markets." Master's thesis, Miami University, 2018. http://rave.ohiolink.edu/etdc/view?acc_num=miami1533158563565605

    Chicago Manual of Style (17th edition)