What Sports Betting Teaches Us about Financial Market

[BobbyFK]

Do you think there is any correlation?

What Sports Betting Teaches Us about Financial Markets

In a new paper, Tobias Moskowitz of Yale SOM finds that the sports betting market exhibits pricing patterns also seen in the stock market—suggesting that both may be subject to human irrationality.

insights.som.yale.edu

 

[Tanko]

The article is interesting but the last paragraph is very accurate:


Don’t chase winners in sports betting,” Moskowitz says. Similarly, people love a long shot: “They way overpay for an underdog and way underpay for a favorite.” But the biggest lesson of all? With astronomically high transaction fees and commissions for bookmakers, “you can’t make money.”

 

[BobbyFK]

The article is interesting but the last paragraph is very accurate:


Don’t chase winners in sports betting,” Moskowitz says. Similarly, people love a long shot: “They way overpay for an underdog and way underpay for a favorite.” But the biggest lesson of all? With astronomically high transaction fees and commissions for bookmakers, “you can’t make money.”

Aka juice/vig