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The Search for Market Inefficiencies--A Study of Sports Betting
a Stanford Graduate School of Business Executive Briefing
Featuring: Justin Wolfers
Assistant Professor of Economics
Stanford Graduate School of Business
Highlights:
The remarkable accuracy of bookmarkers' odds just before game time.
Cognitive fallacies, and the effect of human bias on valuation.
How an understanding of human error can lead to profitable market strategies.
The newly emerging field of behavioral finance draws on psychology, economics, and finance to yield important insights into the operation of financial markets. In this lecture, Justin Wolfers details his statistical studies of market inefficiencies as found in sports betting. While the predictive accuracy of betting odds limits opportunities for profit, human errors can create the opportunity ot gain an advantage. These inefficiencies can be spotted in the financial marketplace, as well, revealing potentially winning opportunities for the saavy investor.
Stanford Professor Justin Wolfers is a Visiting Scholar at the Federal Reserve Bank of San Francisco. His Ph.D. is from Harvard, where he earned a number of awards, including a Fulbright Scholarship.