Market Power

Musings by an academic economist on the power of markets and the power over markets.

Thursday, November 18, 2004


The Econoclast has some interesting anecdotal evidence on the effect of the NHL lockout on NHL players. See here.

The Econoclast argues that most NHL players earn tremendous rents over their next-best alternative. That’s probably true of a lot of athletes in most sports.

When an employer locks out its union employees, it tries to impose costs on the union. When a union strikes, it tries to impose costs on the employer. Regardless of who formally initiated the NHL dispute, players are feeling a pinch and teams are feeling a pinch. We’ll see who cracks first.