Uncovering predictability of individual and team success: Significant Hot Hand Effect in International Cricket

We investigate the predictability and persistence (hot-hand effect) of individual and team performance by analyzing the complete recorded history of international cricket. We introduce an original temporal representation of performance streaks, which is suitable to be modelled as a self-exciting point process. We confirm the presence of predictability and hot-hands across the individual performance and the absence of the same in team performance and game outcome. Thus, Cricket is a game of skill for individuals and a game of chance for the teams. Our study contributes to recent historiographical debates concerning the presence of persistence in individual and collective productivity and success. The introduction of several metrics and methods can be useful to test and exploit clustering of performance in the study of human behavior and design of algorithms for predicting success.

Uncovering predictability of individual and team success: Significant Hot Hand Effect in International Cricket

We investigate the predictability and persistence (hot-hand effect) of individual and team performance by analyzing the complete recorded history of international cricket. We introduce an original temporal representation of performance streaks, which is suitable to be modelled as a self-exciting point process. We confirm the presence of predictability and hot-hands across the individual performance and the absence of the same in team performance and game outcome. Thus, Cricket is a game of skill for individuals and a game of chance for the teams. Our study contributes to recent historiographical debates concerning the presence of persistence in individual and collective productivity and success. The introduction of several metrics and methods can be useful to test and exploit clustering of performance in the study of human behavior and design of algorithms for predicting success.

A regularized hidden Markov model for analyzing the ‘hot shoe’ in football

We propose a penalized likelihood approach in hidden Markov models (HMMs) to perform automated variable selection. To account for a potential large number of covariates, which also may be substantially correlated, we consider the elastic net penalty containing LASSO and ridge as special cases. By quadratically approximating the non-differentiable penalty, we ensure that the likelihood can be maximized numerically. The feasibility of our approach is assessed in simulation experiments. As a case study, we examine the ‘hot hand’ effect, whose existence is highly debated in different fields, such as psychology and economics. In the present work, we investigate a potential ‘hot shoe’ effect for the performance of penalty takers in (association) football, where the (latent) states of the HMM serve for the underlying form of a player.

Market Efficiency and the Setting of Salaries for NBA Daily Fantasy on FanDuel and Draft Kings

The market for daily fantasy sports for the NBA is examined with respect to efficiency when pricing player salaries for the games. Simple factors such as home court advantage, rest, and opponent are shown to significantly effect performance beyond posted salaries in the respective markets. In addition, a “hot hand” effect is found in that players that exceed expectations in previous games are shown to outperform salary-based expectations in the next contest. These factors yield a rejection of market efficiency as it relates to salaries in the marketplace. Legal ramifications for these contests as games of skill are examined.