IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Cooperation in Prices and Capacities: Trade Associations in Brewing after Repeal

  • McGahan, A M
Registered author(s):

    This study's main contribution is examination of the excess capacity held by brewers during a period in which they tacitly cooperated on price. The analysis covers the industry in the United States between repeal of Prohibition in 1933 and wartime rationing of raw material in 1942. From April 1933 to May 1935, "destructive price-cutting" among brewers was illegal under the National Industrial Recovery Act. Subsequent rivalry among trade associations facilitated the development of tacitly cooperative pricing arrangements. The trade associations appear to have adopted a different agenda as cooperation spread among all brewers. Instead of just facilitating cooperation on price, the associations may have facilitated cooperation in the distribution of responsibility for enforcement. Members apparently distributed responsibility by coordinating the allocation of excess capacity. These and other results are interpreted to suggest additional avenues for research on the distribution of responsibility for punishments in a cooperative regime. Copyright 1995 by the University of Chicago.

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Article provided by University of Chicago Press in its journal Journal of Law & Economics.

    Volume (Year): 38 (1995)
    Issue (Month): 2 (October)
    Pages: 521-59

    as
    in new window

    Handle: RePEc:ucp:jlawec:v:38:y:1995:i:2:p:521-59
    Contact details of provider: Web page: http://www.journals.uchicago.edu/JLE/

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ucp:jlawec:v:38:y:1995:i:2:p:521-59. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division)

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.