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Overreaction in Football Wagers
1Department of Economics, Pomona College, Claremont, California.
Big Data
|November 15, 2018
Abstract:
Football scores are an imperfect measure of a team's ability, and consequently exaggerate differences in abilities. Those teams that perform the best and the worst are not really so far from average in their ability; thus their future performances regress to the mean. Betting data indicate that gamblers do not fully account for this regression.
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