Title

Public policy and market power in the rayon industry

Keywords

Coordination; Public policy

Abstract

This paper investigates the effects of the National Industrial Recovery Act (NIRA) and the Robinson-Patman Act on market power in the 1930s rayon industry. Unlike the traditional structure-conduct-performance approach of constructing measures of market power from accounting data, the model we use in this paper estimates market power from a gauge of the discrepancy between price and marginal cost. The results show that the NIRA increased market power in the rayon industry, whereas the Robinson-Patman Act did not have a noticeable effect on market power. Also, market power appears to have steadily declined throughout the 1930s. © 1997 Temple University.

Publication Date

1-1-1997

Publication Title

Journal of Economics and Business

Volume

49

Issue

4

Number of Pages

369-377

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1016/s0148-6195(97)00011-8

Socpus ID

15844408312 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/15844408312

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