Last night I was fuming mad at the calls in the Hornets-Lakers game. I thought the refs blew not just particular calls, but that their entire method to calling the game was flawed. Now before we go any further, I want to make it clear that the Lakers beat us. End of story. I’m not blaming the refs for the loss. But it occurred to me that it’s something I’ve seen before and just never knew how to describe it. Now I think I can.

There’s something called the Coase Theorem. It’s a theory that describes the efficiency of an economic allocation or outcome in the presence of externalities. This 1937 theory finally won the Nobel prize in 1991, and has a variety of applications, such as when Judge Learned Hand now-famously applied it to American tort law (e.g., negligence, personal injury, etc.). Basic tort law says that when someone is harmed, someone is the cause of that harm, and whosoever caused that harm must then make restitution for the aforementioned harm. Judge hand resolved this theory to the formula of B < PL, where B = the burden of adequate protection against foreseeable damages, P = the probability of damage occurring and L = the gravity of the resulting loss. The practical application of this formula, then, was to suggest to a company that if the cost of taking certain precautions was less than result of probability times the loss that might be incurred, the company was better off to settle out of court or pay the cost of lawsuits rather than to incur the cost of taking the precaution (think of the Edward Norton's auto recall example from Fight Club). The problem with this application to tort law came when certain scholars, like Richard Posner, believed that if a company made the “right” economic choice of not taking the precaution, then they were not even negligent for the harm that ensued. Yet the flaw in this interpretation was that the formula took into account the fact that the company would be held negligent. Thus, to not find that company negligent was rewarding them unjustly for making their products more dangerous to reap greater profits. You can see the controversy this caused.

Okay, you’re asking me. How the hell does this relate to basketball, let alone the call scheme of referees? Simple. Teams like the Lakers last night, like the Celtics last year, and the Spurs or Pistons since, well, ever employ stifling, in-your-face defense. They gameplan on trying to frustrate opposing players by getting in their grill, playing press defense, and making as much physical contact as the rules allow. Defense wins championships, right? Only there’s one problem, this maxim, as well as the maxim that basketball is a “contact sport,” equate physical contact as the norm, and the very reputation of being “tough” defensively means that refs expect that team to give the other team fits. As a consequence, the refs have little sympathy for the harshly defended player, because they believe that they can’t “take the game into their hands” and bail out that player when the other team is just defending well. Okay, you’re still saying, what’s the problem, right?

Well here’s the thing, when you play that kind of defense, when you are pressing, when you are swiping at the ball, when you are pressing bodies tight all night, you’re playing in a defensive gray zone: you’re trying to make as much contact possible without fouling. But by the very philosophy of such play, by the very proximity, you are bound to commit fouls. Just like CP gets burnt every now and then going for steals, so will any uber-physical defender eventually, and inevitably, commit a foul. This isn’t a game of perfection, but of percentages; you just can’t play that close and never foul. So s the problem is that the refs are afraid to make the call against these types of defenders, because they just assume they’re playing tough defense. It’s as if they are agreeing with Coase or Posner and saying that just because such teams figured out that the potential burden imposed by increased fouls is less than the probability of enough fouls to cost your team, THEY SHOULDN’T BE WHISTLED FOR FOULS THAT ARE FOULS, because they made the correct strategic choice.

I call bullshit. A foul is a foul. Whether’s it’s CP, Kobe, Chris Mihm, or Ryan Bowen. A hack is a hack. Whether you’re Bruce Bowen, Chauncey Billups, Allen Iverson, or Ricky Davis. A block is a block. Your superstar status shouldn’t matter. Your efficacy as a defensive unit shouldn’t matter. The best teams don’t foul because they don’t commit fouls, not because they play tough and are expected not to foul.

What really creates problems with execution of this Coase Corollary in NBA refereeing is the disparity it creates when one team is renowned for their defense and the other is not. So far this year, the Lakers’ defense had been lauded. The Hornets, not so much. So you get the problem where you get the Hornets getting signaled for regular fouls, which they, like any team, commit. But then, on the other end, you get a team getting away with fouls because B < PL, that is, they are a good defensive team, so we won’t reward the other team with fouls for not beating that defense themselves. Yet this creates an unbalanced game, where the referees are calling fouls on one team that they’re not calling on the other. The problem is compounded even more if one of the teams is known to pick up offensive fouls, which the Hornets are, and then you get the “defensive” team receiving the benefit of “offensive fouls” that aren’t there because their reputation as defenders says that otherwise the offensive player just couldn’t have made that move against such a tough defense without fouling.

So to sum up, what I’m saying is that tough defensive teams are allowed to get away with too many fouls based solely on their strategic choice to engage in aggressive defense and the perception of them as being good at doing so. As a result, their opponents face an unfair bias in how the games are called. Ever wonder why all the run and gun teams have trouble winning close games? It’s because all those “defense wins championship” teams foul them and never get called on it. Well, I’m calling you on it. Here. Now.

19 Responses to “The Coase Corollary”
  1. ticktock6 says:

    Interesting post (I even got past the law school talk, which as you well know, makes my eyes glaze over for reasons we’re both aware of)… possibly borne out by the fact that, remember I pointed out last night when we were at the game, Posey– one of those hard defender guys by rep– still had zero fouls till the third or maybe even fourth quarter. I couldn’t believe it. He was flopping, hands everywhere, all over Kobe. I mean, I love him cause he’s on our side, but otherwise I would have been like, what the hell.

    And yet he didn’t get called for anything. I think he ended the game with one foul. “Smart D” they say. Or is it, “Oh that’s Posey, what a hard nosed defender…” So that’s an example from the Hornets side that supports what you said.

  2. mW says:

    Exactly. And you know what, last year, when we were being heralded as a defensive team, maybe we even benefitted from it. But we weren’t the media darlings that the Lakers are this year or the Celtics were last year, and those things amplify the perception that effects this.

  3. NOEngineer says:

    My observation is that referees will try to kill off a team like the Hornets with bogus offensive fouls that equate to turnovers and sometimes take points off the board, by calling touch defensive fouls on the chosen team (no change of possession, no points unless over the limit, often costs points if a poor free-throw shooter is “given” the shots). This keeps the final total number of fouls close to equal while costing the non-chosen team a number of points. The 3rd game against San Antonio was a great example, as was last night. The undercut of CP3 by Fisher is one example, the hip check call on Tyson early for his 2nd foul was another. Two lost possessions in a 7-point game…..

  4. Mark says:

    Dude, we’ve been on the same wavelength for the past few days. I was contemplating this issue studying at the library (okay okay, I fail as a student).

    My explanation I decided upon the argument of seniority was that if the player is truly an elite player, they should not relegate their skill set to rule-violating moves. If you’re that good, then you shouldn’t have to settle for no-calls to get yours. D-I-still-can’t-spell-his-name-wrong-Wade travels quite often spinning around the basket. Nobody cared that Michael Jordan himself traveled/pushed off/killed a man (okay, maybe not the last one). Hell, Chris Paul flops alot too. Sure we watch the game for the stars; it’s human nature. But it’s a probable causation for predestination in this league.

    Of course, this game will never be as structured as the NFL due to the subjectivity of the rule-violating-interpretations, but until the Stern Button (patent pending) is abolished, there will always be blatant violation of rules by the league itself.

    and ticktock, as a Texan, I know exactly what you mean about The Pose. I’m inclined to think my San Antonio friends think ‘glad he’s on my team’ when they see Bitch Bowen injuring players.

  5. Michael says:

    The NBA has always been that way, bryant was contained last night but thanks to his 9 free throws he got to twenty points, watching the game and he got his first foul after one minute of play I knew that he wasn’t going to be in foul trouble. I figured the refs were trying to psych out the Hornets making them think they’d get a fair shake for a change. Just like last year when CP3 almost got his MVP the last game vs the lakers was shit as was the next nights game vs the kings, I would not be surprised if we find out one day a lot of the NBA is fixed because the crap I’ve seen out there is ridiculous and they have an instant replay now for fouls right? So why the hell don’t they use it once and awhile?

  6. Hornet-Saint says:

    Please direct all hatemail to kobesucks@lakersareoverrated.com

  7. Niall Doherty says:

    Great read. I understood the law school talk perfectly once you threw in the Fight Club example. But I still find it very hard to believe that the referees can be that biased and get away with it, especially since I read the following on TrueHoop a few months ago. It was part of a series of notes that Henry Abbott posted after spending a day with NBA refs::

    “[NBA supervisor of officials] Bernie Fryer talked about the many reviews that occur of every game. The in-arena observer does a report noting all the bad calls. The referees themselves do a report based on their own video analysis. And people in the league office do their own review. The three feed into a referee’s accuracy score, which, Fryer says, affects things like lucrative crew chief and playoff assingments. Fryer said that was why referees wouldn’t do a “makeup call” after a bad call — two bad calls kill your accuracy score!”

    So for the bias you speak of to exist, it would have to exist on at least two of those three levels. While that’s certainly possible, I think it makes it less likely that referees could show repeated bias and get away with it. I truly believe that the NBA tries hard to keep the officiating as clean and as fair as possible, even more so since the Donaghy scandal. There will always be some human bias and error, but the review systems they have in place would seem to do a good job minimizing that.

  8. Niall Doherty says:

    By the way, here’s the link to the TrueHoop article I referenced:
    http://myespn.go.com/blogs/truehoop/0-34-107/Notes-from-a-Day-with-NBA-Referees.html

    Very interesting read.

  9. mW says:

    Here’s the thing. I don’t think it’s so much as a conscious bias on the part of refs as much as a reflection of their psychological approach, or to be even more specific, a representation of the moral framework, i.e., “defense wins champsionships, and so I won’t bail out the weaker team.” But this of course, presupposes the fact that the very vigor that some teams approach defense with equates to efficacy of their defensive scheme and not just vigor itself. I could run out their and smother CP, but I bet I’d foul him doing it. Also, with all due respect Niall, I rarely put too much stock in referees explaining to us why their system is not flawed. It’s like asking O.J. if he did it.

    One last thought. Kings’ coach Reggie Theus was just fined $25,000 for lambasting the refs for giving the Kings 17 free throws in a game and the Pistons 36. I don’t like to rely upon that stat line alone, but I didn’t see the game. You all can do the math on whether those two teams would likely fall under the Coase Corollary that I’ve suggested here.

  10. Mark says:

    Certainly the league will address bad calls (as I would hope they did), but if they neglect to call a slight off-ball hinderance (aking to football’s past interference), I seriously doubt they would hold that against the referees. My friend played competitively in high school and the coach deliberately taught to be underhandedly dirty, pulling jerseys and the like. And if you can get away with it, you don’t change much transitioning to the league. It’s prominent, but due to the business of the league, it would severely slow the game down and also force the game to become too structured; both detriments to the game’s entertainment. Plus nobody cares about whether Ilgauskasis being held; they’re all paying attention to LeBron. I feel no-calls are probably a bigger problem than actual calls.

    Nice read too Niall. It reminds me of the Steelers’ Hines Ward getting fined this year for his brutal blocks. In-game no calls, and nothing dirty with replay, but it involved some strong blocks. There was no explanation for his post-game fine, which is something that article addresses: the constant need to explain the violation committed by the player. I feel the players are justified for feeling entitled to the right as well, but always envisioned the player just yelling ‘#^!@’ instead of actually demanding an explanation.

  11. Michael says:

    I still find it a slight coincidence that stern was talking about how great a lakers celtics showdown would be and then all of a sudden the right teams lost last year making la number one in the west to go with number one in the east boston, the hornets were screwed out of two games with calls which let us slide to second it would not surprise me if they fixed those games for some sort of marketing strategy

  12. mW says:

    @ Michael, definitely, the NBA is the league of conspiracies. I think that there is a definite possibility of what you’re saying is true. But I also want to make clear that what I’ve proposed above is distinct from those kind of targeted assessments. I think it’s just a general approach to calling games that favors “defensive” teams or even players.

    That said, the “Stern Button” is real question on a lot of fans’ minds. I guess there’s no ad revenue and end product purchasers in the big markets. But, the NBA should encourage small markets, not look to pass them over for the bigger ones. I mean a lot of those “smaller” cities turn out great teams, and have even greater fans. Look at the Green Bay franchise in football, one of the most fervent fan bases in sports. How is that not good for everyone in the NFL? On the other hand, look at Kansas City in baseball. They just can’t hold on to any good player they draft because he’ll go to a big market team with no salary cap. In the NBA, with both a salary and luxury cap, there’s no reason any given market can’t succeed. I think the goal of the NBA at large should be on making sure every team is successful and legitimately has a chance every year. For example, they shouldn’t be nosing into stadium deals and telling cities they might lose their franchise (a la Seattle).

    But that’s just me.

  13. Michael says:

    Okay so how does the guy at nba.com who writes the mvp race article keep his job, so OJ Mayo is first in rookie of the year ahead of Derrick Rose so how is it that Rose is even mentioned as an MVP candidate on that side of things. Also for the lakers bryant has been one of their worst starters so far this season and his name is second now…..honestly wouldn’t it be the best player on that team. Where do they find these guys to base MVP judgements on jersey sales or merchandise because right now it’s between the spokesman for sprite and…..well whatever the hell kobes name is on(tampons or something who knows).

  14. ticktock6 says:

    Besides, we have seen the ROY, and it’s Rudy Fernandez.

  15. Mark says:

    Remember Michael, there’s no defining term for ‘MVP’ anymore. If it’s highest stats, it’s always going to be Bron Bron. If it’s most valuable, it’s CP3. If it’s best player on the best team, it’s Shobe. The award’s characteristic is transient, and solely dependent on some form of self-validity and media hype.

  16. mW says:

    I think is a combination of things. You have to have excellent stats, obviously. You have to be pulling your team to victory, and you have to be a good guy. Stephen Jackson could have scored 80 points a game the year of the Brawl and he wouldn’t have gotten it. It’s also historical, like it or not. Kobe had to earn a few years before he could get real consideration. So did Nash. So did Iverson. For this reason, CP might have to wait another year, but Lebron is “ripe”. I see also that you need to be on a winner. You shouldn’t get MVP consideration for being Ricky Davis. I think this has been the other knock on Lebron. Sure he’s on a playoff team, but a mediocre one, just like most of the East. My big gripe was when so many people last year thought the Lakers having one or two more wins (##1 and 2 seeds) meant he deserved it over CP.

    I think the criteria is about the same for most people, they just put greather prioritization on certain of those criteria, and this is where the disagreement comes from.

  17. Michael says:

    Just because people voted for the wrong person last year doesn’t mean there are no defining characteristics, it is most valuable player and anyone who speaks the english language understands that that means the player who if removed would make the team the most useless. The lakers can’t be mentioned for having such a great bench and then say they need bryant, I understand James being up there but I’m sick of a team of guys who once lead their respective teams(Odom, Pau) being mentioned as needing bryant blah blah. There are lots of players out there who are good on crappy teams and without Paul to create the offense and encourage his teammates to better themselves they would not have made the playoffs last year.

  18. Mark says:

    I see what you guys are saying, but I seriously believe there are no defining characteristics (more akin to mW’s belief on the prioritization). The year Dirk won, yes. He was the best player on the best team. If you took him off the team, however, the Mavericks would have still destroyed. They were just that good that year. I don’t care what anybody says about Golden State. The Mavericks were just cruising that year. Also Jason Kidd should have won in 2002. Just have to say that.

    Unfortunately, with Chris Paul, he is our best player on our team, and we run everything through him. Without him, we’re no longer a force. Similar with LeBron, but definitely not with Shobe. Their team is so capable (credit their bench for developing so quickly mid last season) that he could rest until the playoffs and they’d still be a playoff lock.

  19. Caleb says:

    This is exactly why we need to step up our defense. I know you can’t press and trep the whole game without wearing everyone out… but when our 2nd unit started putting the pressure on the Blazers the other night? That was some of the best defense the Hornets have played thus far this year… and it worked! I think we need to do that more, especially when the 2nd unit comes in… we need see a bench that comes in and brings out the lockdown D, forcing bad shots and turnovers.

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