Next Article in Journal
The Inconsistent Effects of Plain English Disclosures on Nonprofessional Investors’ Risk Judgments
Next Article in Special Issue
Dynamic Relationships between Price and Net Asset Value for Asian Real Estate Stocks
Previous Article in Journal
Macroeconomic Stability in a Model with Bond Transaction Services
Previous Article in Special Issue
Foreign Exchange Speculation: An Event Study
Article Menu

Export Article

Open AccessArticle
Int. J. Financial Stud. 2018, 6(1), 24; doi:10.3390/ijfs6010024

Tests of Racial Discrimination in a Simple Financial Market: Managers in Major League Baseball

Falk College of Sport and Human Dynamics, Syracuse University, Syracuse, NY 13244, USA
Department of Finance and Economics, Coastal Carolina University, Conway, SC 29528, USA
Author to whom correspondence should be addressed.
Received: 22 December 2017 / Revised: 20 February 2018 / Accepted: 23 February 2018 / Published: 1 March 2018
(This article belongs to the Special Issue Financial Economics)
View Full-Text   |   Download PDF [192 KB, uploaded 1 March 2018]


This study tests for racial discrimination against minority managers in Major League Baseball using financial-market imbalances as it relates to the wagering marketplace for the sport. Using detailed betting data on the percentage bet on the favorite from Sports Insights, we test for prejudice against minority mangers using an ordinary least squares multiple regression model. The results reveal that bettors have a clear preference for the favored team as the percentage bet on the favorite increases with the odds on the favorite. In addition, they prefer road favorites by an even greater margin. In terms of minority managers, there is no evidence of discrimination against minorities. In fact, bettors prefer to wager on minority managers by a statistically significant margin when they are favorites. This finding suggests that either the participants in this financial marketplace are not prejudiced against minority managers or the financial incentives inherent in the market drive out discrimination against the minority managers. View Full-Text
Keywords: race; discrimination; betting markets; managers; baseball race; discrimination; betting markets; managers; baseball
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

Scifeed alert for new publications

Never miss any articles matching your research from any publisher
  • Get alerts for new papers matching your research
  • Find out the new papers from selected authors
  • Updated daily for 49'000+ journals and 6000+ publishers
  • Define your Scifeed now

SciFeed Share & Cite This Article

MDPI and ACS Style

Paul, R.; Weinbach, A.; Mattingly, J. Tests of Racial Discrimination in a Simple Financial Market: Managers in Major League Baseball. Int. J. Financial Stud. 2018, 6, 24.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics



[Return to top]
Int. J. Financial Stud. EISSN 2227-7072 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top