Ohio school milk markets: An analysis of bidding

Robert H. Porter; J. Douglas Zona

doi:10.2307/2556080

Ohio school milk markets: An analysis of bidding

Robert H. Porter, J. Douglas Zona

Economics

Research output: Contribution to journal › Article › peer-review

166 Scopus citations

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 firms in Cincinnati 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 6.5%, or roughly the cost of shipping school milk about 50 miles.

Original language	English (US)
Pages (from-to)	263-288
Number of pages	26
Journal	RAND Journal of Economics
Volume	30
Issue number	2
DOIs	https://doi.org/10.2307/2556080
State	Published - 1999

ASJC Scopus subject areas

Economics and Econometrics

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10.2307/2556080

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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 firms in Cincinnati 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 6.5%, or roughly the cost of shipping school milk about 50 miles.",

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Ohio school milk markets: An analysis of bidding

Abstract

ASJC Scopus subject areas

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