THE WISDOM OF NO CROWDS: THE REACTION OF BETTING MARKETS TO LOCKDOWN SOCCER GAMES.

The support of home spectators is one of the contributing factors to the home advantage effect in sports matches. The COVID-19 pandemic led to European soccer matches being played without spectators. Contrary to previous findings in the literature, we show that betting markets adjusted promptly to account for a reduced home advantage in both goal difference and the probability of a win. These adjustments proved accurate over a large sample of soccer matches subsequently played without spectators, even though the earliest games appeared to suggest a much bigger change in home advantage. [ABSTRACT FROM AUTHOR]