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Tag Archives: market efficiency

Market efficiency in sports

Sports markets are not as efficient as financial markets. Nonetheless, the concept of market efficiency does have important implications for sports. Consider how the NBA has evolved in response to the three point shot. Teams gradually learned that the best strategy was to take lots of three point shots (long shots) and layups (relatively easy 2 point shots.) A recent article in The Ringer describes how defenses have adjusted to this optimal strategy so that “quality...

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