IDEAS home Printed from https://ideas.repec.org/a/tpr/restat/v79y1997i1p151-154.html
   My bibliography  Save this article

Another Look At The Impact Of The National Industrial Recovery Act On Cartel Formation And Maintenance Costs

Author

Listed:
  • Matthew B. Krepps

Abstract

Alexander's (1994) finding that the National Recovery Administration's Codes of Fair Competition led to a change in the critical concentration level during the 1930s is questioned. No regime switch is detected when a common industry sample is employed. Also, when industries with and without codes are analyzed, codes appear to have no effect on price-cost margins during the period. This absence of effect is postulated to be a result of the unenforceability of trade practice provisions contained in many codes. The empirical results of this paper suggest that the existence of codes was not sufficient to enable industries to overcome cartel formation costs. Only easily enforceable trade practice provisions appear to have affected the structure-performance relation in the period following repeal of the National Industrial Recovery Act. © 1997 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

Suggested Citation

  • Matthew B. Krepps, 1997. "Another Look At The Impact Of The National Industrial Recovery Act On Cartel Formation And Maintenance Costs," The Review of Economics and Statistics, MIT Press, vol. 79(1), pages 151-154, February.
    • Handle: RePEc:tpr:restat:v:79:y:1997:i:1:p:151-154
    as

    Download full text from publisher

    File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/003465397556502
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tanja Artiga González & Markus Schmid & David Yermack, 2019. "Does Price Fixing Benefit Corporate Managers?," Management Science, INFORMS, vol. 65(10), pages 4813-4840, October.
    2. Chicu, Mark & Vickers, Chris & Ziebarth, Nicolas L., 2013. "Cementing the case for collusion under the National Recovery Administration," Explorations in Economic History, Elsevier, vol. 50(4), pages 487-507.
    3. Jason E. Taylor, 2007. "Cartel Code Attributes and Cartel Performance: An Industry-Level Analysis of the National Industrial Recovery Act," Journal of Law and Economics, University of Chicago Press, vol. 50(3), pages 597-624.
    4. Connor, John M., 1997. "Archer Daniels Midland: Price Fixer To The World," Staff Papers 28653, Purdue University, Department of Agricultural Economics.
    5. Peter L Ormosi, 2011. "A tip of the iceberg? The probability of catching cartels," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2011-06, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    6. Rene Y. Kamita, 2010. "Analyzing the Effects of Temporary Antitrust Immunity: The Aloha-Hawaiian Immunity Agreement," Journal of Law and Economics, University of Chicago Press, vol. 53(2), pages 239-261, May.
    7. Chicu, Mark & Ziebarth, Nicolas L., 2013. "Multi-market contact and competition: evidence from the Depression-era portland cement industry," International Journal of Industrial Organization, Elsevier, vol. 31(5), pages 603-611.
    8. Margaret C. Levenstein & Valerie Y. Suslow, 2016. "Price Fixing Hits Home: An Empirical Study of US Price-Fixing Conspiracies," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 48(4), pages 361-379, June.
    9. Taylor, Jason E. & Neumann, Todd C., 2013. "The effect of institutional regime change within the new deal on industrial output and labor markets," Explorations in Economic History, Elsevier, vol. 50(4), pages 582-598.
    10. Alexander, Barbara & Libecap, Gary D., 2000. "The Effect of Cost Heterogeneity in the Success and Failure of the New Deal's Agricultural and Industrial Programs," Explorations in Economic History, Elsevier, vol. 37(4), pages 370-400, October.
    11. Jason E. Taylor, 2011. "Work‐sharing During the Great Depression: Did the ‘President's Reemployment Agreement’ Promote Reemployment?," Economica, London School of Economics and Political Science, vol. 78(309), pages 133-158, January.
    12. Taylor Jason E, 2010. "The Welfare Impact of Collusion under Various Industry Characteristics: A Panel Examination of Efficient Cartel Theory," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-29, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tpr:restat:v:79:y:1997:i:1:p:151-154. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kelly McDougall (email available below). General contact details of provider: https://direct.mit.edu/journals .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.