Tyler Cowen in a post titled "the Coase theorem is back in the saddle":
On nearly every count, the deal favors the owners, who had sought all along to overhaul the system. The players made significant concessions, including a reduction of up to $300 million year in salaries, $3 billion over the life of the agreement.
It seems there will be an NBA season. The details of the deal have not yet been released, and on minor issues are still being negotiated, but the exact revenue split will depend on revenue projections. Henry Abbott discusses winners and losers.
via marginalrevolution.com
There are a couple of interesting comments on what the Coase theorem is all about. This is the one that I left:
But wasn't Coase mostly concerned with externality (or did I miss something?)? The NBA situation seems like more of a negotiation over private property for which the market failure isn't externality, with an assignment of property rights solution, but market power.
I'm expecting some abuse since I haven't read Coase in 25 years. Tim: I could use a little help here!
And since we're talking about sports, watching College Game Day on the U this morning, Desmond Howard said that he thought for Auburn to win the defense and special teams should try to score a touchdown or two ... um, er, isn't what defense and special teams try to do every game? Was Desmond's insight that Auburn should try harder against Alabama?
Some other non-economic observations:
- Lou Holtz picked Notre Dame to win today.
- UK plays UT for last place in the SEC East. I've been wearing my hat and sweatshirt since I work up and am expecting a big win, breakin a 26 game losing streak.
- Rick Bozich notes that everyone's sweetheart Bobby Petrino is not one to not run up a score.
- I'll be at a pottery show next Saturday while UK plays UNC in basketball and ASU plays their first round playoff game at home. The cable guy is supposed to be here between 8 and 12 to switch out our box so that we'll have DVR (yes, I've been living without DVR).
- #25 Centre College tries to upset #2 Mt. Union in the D3 playoffs today after the big win over Hampden-Sydney. I'll be following the live stats while watching UK-UT.
- I just started reading the ESPN book (after finishing the Wizard of Oz in a father-daughter reading pact).