Monday, August 4, 2008

Gains from Trade and why Favre won't get Traded

Gains from trade occur when one side has different endowments or preferences that make exchanges mutually beneficial. For a Brett Favre trade to happen 3 parties have to all be satisfied: GB has to get talent without helping its division and conference rivals, Farve wants to find a team with a legit shot, and the team he goes to has to have QB needs. Most trades only satisfy 2 of these parties, and that's why economics gets so difficult when there are more than two parties have veto power to a transaction.

Which contenders need a QB? The Giants, Pats, Cowboys, Chargers, Seahawks, Colts and Steelers all have stars in the position. The Jags are solid, leaving the Bucs and Skins as the only possibilities from last year's playoff teams. The Titans, Saints, Rams, and Panthers don't seem to be itching to make a QB change either. Bears fans would rather go 0-16 than see "Number Four" wearing GSH on his sleeve. Would the Pack really help the Vikes or Bucs to fill their biggest holes? The only teams left are a handful of AFC teams with little or no chance of making the Playoffs let alone the big piece of dinnerware at the end (I include my beloved Chefs in that lot). So sit back and enjoy the drama, NFL fans.

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