Market Efficiency and Behavioral Biases in Coaching Acumen
Presentation
Overview
Overview
Description
The top college football coaches are paid millions of dollars annually because they have proven that they can win games and championships. This paper examines these coaches earn money for bettors who wagered on them over the past ten years. Specifically, we examine the profitability of wagering on the teams being coached by the fifteen highest paid college football coaches. In general, the results show that betting on teams coached by these individuals would have been profitable. These results are driven by four superstar coaches who beat the wagering line a high percentage of the time. The sport wagering market efficiently priced wagers on 11 of the 15 coaches over the ten-year period. We find that the efficiency in the sport wagering market improved after five years. The rationale is that after five years the markets knows that these coaches are good and they should have had ample opportunity to adjust the new lines so they will be fair bets. The sports wagering market efficiently prices the total points scored by these coaches and no profitable beating strategy is identified in this market.
