In this paper we examine the price movements of contracts that represent bets on NBA games and find that the disposition effect causes significant deviations between contract prices and values. The contracts under examination are listed on Tradesports, a prediction market which provides an ideal...

We examine the post-IPO excess stock returns of hospitality firms from 1996 to 2012 and find underperformance relative to the market on average. However, there are large differences in returns and some firms significantly outperform. We demonstrate that a substantial portion of this variation...

We examine 330,857 trades of prediction market contracts, the values of which are based on against-the-spread outcomes of NFL games, and find the presence of a significant reverse favourite-longshot bias. Surprisingly, the timing of this bias is identical to that observed in traditional...

In this paper we examine the price movements of contracts that represent bets on NBA games and find that the disposition effect causes significant deviations between contract prices and values. The contracts under examination are listed on Tradesports, a prediction market which provides an ideal...

We examine the effects of variations in player compensation on NFL franchise performance from 1994 to 2004. Evidence shows that team success depends significantly upon both the actual and perceived fairness of pay distribution. Specifically, proficiency relative to that of competitors is high...

We examine deviations between the prices and values of binary options listed on Tradesports.com, an online prediction market. Our analysis shows that NFL sides contracts are overpriced on average, indicating that this market may be characterized by a shortage of sellers. We also find that...

We examine the value of expert picks published by SmartMoney, a popular investment periodical. Most can be described as 'hot' stocks - those that have experienced run-ups in price before publication. However, these stocks subsequently underperform the market by 0.45% per month in the 6-month...