Does Wealth Measure Investor Sophistication: An Examination Using Sports Betting Data

9 Pages Posted: 19 Feb 2024

See all articles by David Carter

David Carter

Oklahoma State University

Corey A. Shank

Miami University

Ummahani Akter

Oklahoma State University

Abstract

This paper challenges the common assumption that wealth equates to financial sophistication by employing a novel dataset in the football sports betting market. Focusing on differences between wager amounts, known as sharp money, we examine over 200 NFL and NCAA games from the 2023 season. Contrary to expectations, we find no evidence that gamblers that place bigger wagers are any more accurate than other gamblers. These results have important implications for the finance and economic literature.

Keywords: sports betting, financial markets, behavioral finance

Suggested Citation

Carter, David and Shank, Corey and Akter, Ummahani, Does Wealth Measure Investor Sophistication: An Examination Using Sports Betting Data. Available at SSRN: https://ssrn.com/abstract=4731465 or http://dx.doi.org/10.2139/ssrn.4731465

David Carter (Contact Author)

Oklahoma State University ( email )

Corey Shank

Miami University ( email )

Oxford, OH 45056
United States

HOME PAGE: http://coreyshank.com

Ummahani Akter

Oklahoma State University ( email )

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