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Int. J. Financial Stud. 2018, 6(1), 24;

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)
Full-Text   |   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).

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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.

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Int. J. Financial Stud. EISSN 2227-7072 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
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