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NHL Lockout: Hubris, Animosity, and Transaction Costs

The representatives from the NHL and the NHLPA who met at an O'Hare hotel said they felt they had made some progress and were planning to meet again. Let's face it, there are some serious gains from trade to be made here, but they are not yet getting them. Here is one possible explanation:

Bettman and Goodenow are said to dislike each other and some observers have

expressed concern that the personal animosity between the two men was stalling

negotiations.

There is nothing like animosity to increase transaction costs and negate the gains from trade!