This paper examines whether the outcome bias harms price efficiency in betting exchange markets. In soccer, the match outcome is an unreliable performance measure, as it underestimates the high level of randomness involved in the sport. If bettors overestimate the importance of past match...

Football is a low-scoring sport in which a few single moments can change the result of an entire match, regardless of what else happened during the 90 minutes on the field. Thus, random forces can have a substantial influence on match outcomes. However, decision makers in European football clubs...

In 2002 the leading European football clubs reacted to the increasing player salaries by signing a voluntary agreement to limit player salaries to 70% of revenues. We analyse under which conditions a voluntary salary cap agreement is self-enforcing. Based on a simple model of a league with two...

Torgler and Schmidt (2007) have recently found a positive impact of pay on player performance in German soccer, measured by the number of goals and assists scored within a season. This note shows that their result is spurious as both a player's wage and goal/assist scoring are driven by...

We show that a combined bet at the bookmaker and at the bet exchange market yields a guaranteed positive return in 19.2% of the matches in the top-five European soccer leagues. Moreover, we find that all considered bookmakers frequently offered arbitrage positions, and that they experienced, on...