Behaviorists argue that investors' fear of regret causes them to favor stocks that are popular and familiar. If bettors share that fear, they are more likely to place wagers on favorites vis-a-vis underdogs. Such a preference would inflate point spreads and possibly explain why underdogs in the National Football League produced a significantly nonrandom wins-to-bets ratio of nearly 52 percent over the 1991-2004 period.
Ladd Kochman and Randy Goodwin. "Behavioral Finance and Football Betting: A Note." New York Economic Review. vol. 38, Fall 2007, p. 82-84
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