PRICE CONTROL AND BUSINESS

Field Studies among Producers and Distributors of Consumer Goods
in the Chicago Area, 1942–44

By
GEORGE KATONA
The Principia Press, Inc.
Bloomington, Indiana
1945
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TABLE OF CONTENTS

Acknowledgements (Preliminary pages)
Chapter  Page 

PART ONE: INTRODUCTION

I.  The Task
II. The Method Used in this Study
III.  The Sample 19 
IV.  Historical Background 23 

PART TWO: PRICING PROCEDURES UNDER PRICE CONTROL

V.  Legal Direct Price Increases 32 
VI.  Illegal Direct Price Increases 38 
VII.  Indirect Price Increases: Quality Deterioration 51 
VIII.  Reduction in Number and Size of Markdowns 65 
IX.  Uptrading: Shift to Better-Grade Merchandise 71 
X.  Keeping Prices Stable 84 
XI.  Comparison of Pricing Procedures in Different Fields 91 

PART THREE: FACTORS FAVORING OR IMPEDING PRICE STABILITY

XII.  Type of Regulation 99 
XIII.  Rationing as an Aid to Price Control 115 
XIV.  The Role of the Market Structure 125 
XV.  Wartime Changes in Supply, Demand, Business Volume, and Profits 130 
XVI.  Influence of Price Control on Demand 142 
XVII.  Businessmen's Attitudes toward Price Control 157

PART FOUR: CHANGES IN THE RELATIVE POSITION OF DIFFERENT FIRMS

XVIII.  Informal Rationing 174 
XIX.  The Wholesale Trade 182 
XX.  Small vs. Large Firms 189 
XXI.  Chains vs. Independent, Inexpensive vs. Expensive Firms 195 
XXII.  Business Initiative under Price Control 203 

PART FIVE: CONCLUSIONS

XXIII.  Interviewing as a Tool of Economic Research 209 
XXIV.  Toward an Appraisal of Price Control 215 

APPENDICES

I.  (To Chapter II) The Questionnaires 225 
II.  (To Chapter III) The Sample 229 
III.  (To Chapter XV) Sales and Profits 233 

INDEXES

Index of Commodity Lines Discussed 242 
General Index 244