Purpose
The purpose of this paper is to measure the effect of the National Hockey League (NHL) collective bargaining agreement (CBA) of 2005 between the NHL owners and the NHL Players Association, to determine whether competitive balance in the NHL increased after the CBA.
Design/methodology/approach
Competitive balance in the NHL was compared between 11 seasons before the NHL Lockout Season in 2004-2005 and 11 seasons after, with a new CBA and a new revenue sharing plan. Competitive balance was measured in multiple ways, within seasons, across multiple seasons, by the margin of victory in individual games, by the concentration of teams winning and playing in the NHL championship, in the correlation of winning percentage of a season with subsequent seasons, and the number of consecutive winning or losing seasons.
Findings
There was greater competitive balance after the Lockout Season and the new CBA than before on all of the measures of competitive balance. The NHL has found a management solution to the effective management of a common pool resource and avoided a tragedy of the commons.
Practical implications
While this research builds on previous work which examines the presence of competitive balance in the NHL, it encourages those engaged in labor policy to consider not only the merit of design when negotiating labor policy, but also to explore the impact of policy on organizational outcomes over time.
Originality/value
This paper combines perspectives and insights from multiple disciplines including economists’ ideas about competitive balance in a sports league, ecologists’ ideas about effective management of a common pool resource, and strategic management ideas about management solutions to a sustainability problem.
Human Adaptive Behavior in Common Pool Resource Systems
