Market Power

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

Saturday, February 19, 2005

They're Baaaack!

The two sides in the hockey negotiations are at it again. To game theorists, a "credible threat" is some action that can be rationally taken by a player that will impose costs on his/her opponent. What an interesting example of a credible threat (cancelling the season) which, once played, can be credibly retracted if a settlement be reached. What do the game theorists have to say about that one? I didn't realize the NHL could be so cool! ;-)