The Wall Street Journal, via Market Power:
Messrs. Levitt and Gil found that the odds of a team winning jumped immediately after it scored a goal. But adjusting for other factors, those odds kept climbing for 10 to 15 minutes after the goal was scored — a sign of market inefficiency. That might have been because TradeSports, which is based in Ireland, was new in 2002 and betting on the World Cup was thin.
Justin Wolfers, an economist at the University of Pennsylvania’s Wharton school, looked at betting on the 2006 World Cup on Betfair, an online market with heavier trading and far more European participants, giving it a higher proportion of soccer fans. Trading responded more quickly to goals.
For soccer, go to BetFair —of course.
Link via Niall O’Connor.
