Abstract
In recent years, the introduction and investigation of prediction markets and their uses has become very popular in the economics and finance literature. One place where the use of sports prediction markets, more commonly thought of as betting markets, is quite helpful is in exploring the validity of the uncertainty of outcome hypothesis. The uncertainty of outcome hypothesis states that fans prefer to watch games where the expected outcome of the game is close. We test this hypothesis for Big East college basketball, using betting market prices, and find support for this hypothesis in this market. In addition, expected scoring, also formed from prediction markets, is shown to increase attendance.
Recommended Citation
Paul, Rodney J.; Weinbach, Andrew P.; and Plaut, Jonathan C.
(2014)
"Information, Prediction Markets, and NCAA Basketball Attendance: The Big East Conference,"
Journal of Business, Industry, and Economics: Vol. 19, Article 2.
Available at:
https://roar.una.edu/jobie/vol19/iss1/2