Ohio School Milk Markets: An Analysis of Bidding

Robert Porter and John Zona

No 6037, NBER Working Papers from National Bureau of Economic Research, Inc

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 1980's. We compare the bidding behavior of a group of firms to a control group. We find that the behavior of each of the firms differs from that of the control group. We argue that the behavior of these firms is consistent with collusion. The estimated average effect of collusion on market prices is about six and one half percent, or roughly the cost of shipping school milk about 50 miles.

JEL-codes: L13 L41 (search for similar items in EconPapers)
Date: 1997-05
Note: IO
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published as RAND Journal of Economics, Vol. 30, no. 2 (Summer 1999): 263-288.

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Journal Article: Ohio School Milk Markets: An Analysis of Bidding (1999)
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