Betting on Market Efficiency: A Note
Two mechanical betting rules were applied to games in the National Football League for the 2000-2008 seasons. Wagers of $11 (to win $10) on all NFL underdogs produced a net loss of $717. When bets were limited to visiting underdogs, only $395 (or $44 per year) was lost. The results suggest that gambling on the outcome of football games can be a rewarding activity for bettors more interested in action than financial gain.
Gilliam, K., Kochman, L. (2010). Betting on Market Efficiency: A Note. New York Economic Review, 41, 3.