Stock market anomalies and baseball cards

Baseball cards exhibit anomalies that are analogous to those that are documented in financial markets, namely, momentum, price drift in the direction of past fundamental performance, and initial public offering (IPO) underperformance. Momentum is higher among active players than retired players, and among newer sets than older sets. Regarding IPO underperformance, we find that newly issued rookie cards underperform newly issued cards of veteran players, and that newly issued sets underperform older sets. The results are broadly consistent with models of slow information diffusion and short-selling constraints.