This paper explores the nature and causes of the cartel compliance crisis that befell the National Industrial Recovery Act (NIRA) one year after its passage in 1933. We employ a simple game-theoretic model of the NIRA's cartel enforcement mechanism to show that the compliance crisis can largely...

This paper uses the National Industrial Recovery Act of 1933, which set up industry-wide cartels in the manufacturing sector of the US economy, to gain empirical insight into the current debate on the output effects of cartels. Recent theoretical studies have demonstrated ways in which cartels...

Prohibition (1920-1933) in the United States is generally viewed as a period with a defined beginning and end. When one factors state and local bans into the discussion, however, the issue is much more complicated. Local prohibitions began in the 1830s andstate-level bans appeared in the 1850s....