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Abstract

Sports economics literature has recently explored the idea that there is an incentive to intentionally lose games in some professional sports leagues. This process is known as "tanking" and is largely related to a league’s amateur draft policies. Considering the economic importance of the National Football League (NFL), it is important to develop an understanding of the incentive effects that guide team decisions. Analysis of Seemingly Unrelated Regressions of seasons from 2000 through 2010 shows some evidence that NFL betting markets account for tanking. There is also evidence from game outcome regressions that teams face a reduced incentive to win after clinching a playoff berth.

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