Skip to main content
Market Frictions and Overpriced Favorites: Evidence from Arena Football
Applied Economics Letters (2009)
  • Richard Borghesi
  • Rodney Paul, Syracuse University
  • Andrew P Weinbach
Prior academic studies find that bets on underdogs persistently win more often than expected in National Football League (NFL) and National Collegiate Athletic Association (NCAA) football gambling markets. We extend this stream of literature by examining this ‘underdog bias’ in the market for Arena Football League (AFL) bets, a setting in which both betting limits and bettor sophistication are comparatively low. Results show that the underdog bias is significantly stronger in the AFL, suggesting that smaller and less liquid markets are more heavily influenced by these, and perhaps other, behavioural biases.
Publication Date
Citation Information
Richard Borghesi, Rodney Paul and Andrew P Weinbach. "Market Frictions and Overpriced Favorites: Evidence from Arena Football" Applied Economics Letters Vol. 16 Iss. 9 (2009)
Available at: