Behaviour of the over-round in tennis betting markets
Fecha
2019Director
Versión
Acceso abierto / Sarbide irekia
Tipo
Trabajo Fin de Grado/Gradu Amaierako Lana
Impacto
|
nodoi-noplumx
|
Resumen
By understanding how the over-round is constructed, this work draws a parallel between
financial and sport betting markets, where the over-rounds work analogously to bid-ask
spreads in stock exchanges. As in financial markets, when the probability of facing better
informed investors increases, bookmakers increase the over-rounds or market spreads in
sport betting markets. In this sense, assum ...
[++]
By understanding how the over-round is constructed, this work draws a parallel between
financial and sport betting markets, where the over-rounds work analogously to bid-ask
spreads in stock exchanges. As in financial markets, when the probability of facing better
informed investors increases, bookmakers increase the over-rounds or market spreads in
sport betting markets. In this sense, assuming that in the WTA circuit the adverse selection
costs are higher than in the ATP circuit, the paper examines if over-rounds in WTA games
are higher than in ATP games. The logic works as follows; if less information on WTA
players is publicly available, is not unreasonable to think that the chances of confronting a
better-informed bettor are higher for bookmakers in women’s tennis games (information
asymmetries), leading us to believe that WTA games should exhibit higher spreads than ATP
games. In short, the study confirms this hypothesis and it displays significant evidence
suggesting that in professional women’s tennis games, bookmakers impose higher overrounds than in professional men’s tennis games. Furthermore, based on the study’s findings,
the paper presents a concluding discussion on the wage gap between men and women
professional tennis players. [--]
Materias
Information asymmetries,
Betting markets,
Regression analysis,
Bid-ask spreads,
Adverse-selection costs
Titulación
Enpresen Administrazio eta Zuzendaritzan Nazioarteko Graduatua / Ekonomian Nazioarteko Graduatua Nafarroako Unibertsitate Publikoan /
Graduado o Graduada Internacional en Administración y Dirección de Empresas / Graduado o Graduada Internacional en Economía por la Universidad Pública de Navarra