Bridgman, Benjamin; Qi, Shi; James A. Schmitz, Jr. - Federal Reserve Bank of Minneapolis - 2009
We study the U.S. sugar manufacturing cartel that was created during the New Deal. This was a legal-cartel that lasted 40 years (1934-74). As a legal-cartel, the industry was assured widespread adherence to domestic and import sales quotas (given it had access to government enforcement powers)....