This paper investigates whether sentimental bettors affect the point-spread-formation process in the college football wagering market, as well as whether this market is efficient. Following Avery and Chevalier (1999), this study focuses solely on sources of sentiment that have natural analogues...

Griffin and Tversky (1992) suggest that individuals, when formulating posterior probabilities based on the available evidence, tend to overreact to a new piece of evidence's strength while underreacting to the relative importance of its weight. We test this prediction using the college football...

Tests for market efficiency and rational behavior in financial markets commonly utilize realized return as the variable of interest. Researchers who study point-spread wagering markets for sporting events generally agree that the point spread is these markets' analogue to asset price in...