With a unique data set from New Zealand which allows us to assign each bet to individual bettors, we analyze the impact of experience on behavior and success in non-parimutuel (fixed odds) sports betting markets. We find that experienced bettors bet more on favorites than inexperienced bettors...

This paper contributes to the existing literature on sports-related market anomalies by examining whether losses by the New Zealand national rugby team (the All Blacks) affect stock market returns in New Zealand. The novelty of this paper is in its use of a probability model to control for the...

We provide a theoretical and empirical analysis of the set-level strategic and psychological momentums in best-of-five contests where players have asymmetric abilities. Theoretical predictions match observed Set 1 outcomes, the only set with no set-level psychological momentum, but do not match...

We provide a theoretical and empirical analysis of strategic momentum and psychological momentum in best-of-three contests where players have asymmetric abilities. As a theoretical benchmark, we develop a fully rational model of best-of-three contests and define psychological momentum as...

We study the relation between hedge fund equity holdings and measures of informational efficiency of stock prices derived from intraday transactions, as well as daily data. Our findings support the role of hedge funds as arbitrageurs who reduce mispricing in the market. Hedge funds invest in...

Anomalies are empirical results that seem to be inconsistent with maintained theories of asset-pricing behavior. They indicate either market inefficiency (profit opportunities) or inadequacies in the underlying asset-pricing model. After they are documented and analyzed in the academic...

We examine the relation between changes in hedge fund stock holdings and measures of informational efficiency of equity prices derived from transactions data, and find that, on average, increased hedge fund ownership leads to significant improvements in the informational efficiency of equity...

Long-short anomaly returns are strongly related to the day of the week. Anomalies for which the speculative leg is the short (long) leg experience the highest (lowest) returns on Monday. The opposite pattern is observed on Fridays. The effects are large; Monday (Friday) alone accounts for over...