Set-level strategic and psychological momentum in best-of-three-set professional tennis matches

We provide a theoretical and empirical analysis of strategic momentum and psychological momentum in best-of-three contests between players with unequal skills. As a theoretical benchmark, we develop a fully rational model of best-of-three contests and define psychological momentum as systematic deviation from the theoretical equilibrium. An empirical analysis of 66,262 professional tennis matches from 2002 to 2020 shows that our theoretical model closely matches first set outcomes, which is when set-level psychological momentum is absent. Overall, the empirical results show that both strategic momentum and psychological momentum contribute to the outcomes of best-of-three tennis contests.N

Searching for the favourite-longshot bias down under: an examination of the New Zealand pari-mutuel betting market

This paper tests for the presence of the favourite-longshot bias in a new setting. This bias #150 the tendency for bettors to underbet favourites and overbet longshots #150 has been found in most studies of pari-mutuel and bookmaking betting markets in the USA, the UK and Australia. However, there is growing evidence that in at least some pari-mutuel betting markets there is no favourite-longshot bias. This paper examines the previously unexplored New Zealand pari-mutuel betting market on horse races for evidence of this bias. Utilizing a large sample of recent New Zealand thoroughbred horse races, it is found that while early, off-track bettors price this bias into odds, late (on-and off-track) bettors eliminate much of the bias by the close of betting. That is, the results reinforce the view that not all pari-mutuel betting markets are characterized by a favourite-longshot bias at the close of betting. Evidence is also found that late bettors in this market are smart bettors.

The Impact of Proposition 48 on the Relationship Between Football Success and Football Player Graduation Rates

A previous study finds a negative relationship between football success and football player graduation rates. The present study examines whether changes in freshman eligibility standards produced by Proposition 48 impact this relationship. Our data set contains the 2 years immediately prior to the implementation of Proposition 48 and the 2 years immediately after the implementation of Proposition 48. The main finding of this article is that although football success has a negative impact on football players’ graduation rates prior to Proposition 48, there is no such relationship post-Proposition 48.

The Search for Informed Traders in the Totals Betting Market for National Basketball Association Games

A recent article on line changes in the point spread betting market for National Basketball Association games found evidence that trading incorporates information into price. This article examines a closely related but previously unexamined betting market—the betting market for the total points scored in a game. The authors find that closing totals lines are more accurate forecasts of total points scored than are opening totals lines. It is shown that line changes move betting lines in the correct direction and by the appropriate magnitude to eliminate biases in opening totals lines. Line changes in this betting market, like those in the point spread betting market, cause prices to more accurately reflect fundamental values.