Kochman, Ladd; Goodwin, Randy - In: New York Economic Review 38 (2007) 1, pp. 82-84
Behaviorists argue that investors' fear of regret causes them to favor stocks that are popular and familiar. If bettors share that fear, they are more likely to place wagers on favorites vis-a-vis underdogs. Such a preference would inflate point spreads and possibly explain why underdogs in the...