Revealing the secrets of the KKK had a significant impact on its membership. The group had been using information asymmetry, such as passwords and secret handshakes, to maintain an image of mystery and fear. However, in the 1940s, a journalist named Stetson Kennedy infiltrated the group and revealed its secrets on a popular radio program. This exposure turned the group's mystery into ridicule, leading to a dramatic drop in KKK membership.
Author Steven Levitt, working with journalist Stephen Dubner, shows how economic theories can be use...
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