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George Diemer


This research challenges widely accepted theories regarding sports gambling and the bookmaking industry.  Specifically, the assertions by Strumpf (2003) and Levitt (2004) that risk-seeking bookmakers maximize profit rather than minimize exposure is tested. To do so, this research focuses on an area that few scholars have explored: internet sports books.  A unique data set to analyze the dynamics of competition in NFL gambling industry is used along with a different estimation technique than other scholars have used: cluster analysis. The results of cluster analysis offer insight into the data structure. An alternate hypothesis regarding the workings of the industry are tested to better understand this data structure.

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