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CONTRACTING PROBLEMS AND THE ADOPTION OF REGULATORY CARTELS
Author(s) -
HALLAGAN WILLIAM S.
Publication year - 1985
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1985.tb01751.x
Subject(s) - cartel , referendum , opposition (politics) , order (exchange) , economics , business , industrial organization , collusion , political science , finance , politics , law
Since 1966 a USD A marketing order has governed the sales volume of domestic hop growers. Despite offering cartel‐like advantages, a hop marketing order proposal was defeated in a 1965 referendum of growers. Using individual grower votes from this referendum this paper identifies the sources of opposition to the 1965 marketing order. The analysis proceeds to examine the types of recontracting that transpired enabling the adoption of a revised proposal in 1966.