Ohio School Milk Markets: An Analysis of Bidding

Robert Porter and John Zona

RAND Journal of Economics, 1999, vol. 30, issue 2, 263-288

Abstract: We examine the institutional details of the school milk procurement process, bidding data, statements of dairy executives, and supply characteristics in Ohio during the 1980s. We compare the bidding behavior of a group of firms in Cincinnati to a control group. We find that the behavior of these firms is consistent with collusion. The estimated average effect of collusion on market prices is about 6.5%, or roughly the cost of shipping school milk about 50 miles.

Date: 1999
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Working Paper: Ohio School Milk Markets: An Analysis of Bidding (1997)
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