Ohio School Milk Markets: An Analysis of Bidding

Posted: 18 May 1999

See all articles by Robert H. Porter

Robert H. Porter

Northwestern University - Department of Economics; National Bureau of Economic Research (NBER)

J. Douglas Zona

Charles River Associates (CRA)

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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 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.

JEL Classification: L66

Suggested Citation

Porter, Robert H. and Zona, J. Douglas, Ohio School Milk Markets: An Analysis of Bidding. Available at SSRN: https://ssrn.com/abstract=150262

Robert H. Porter (Contact Author)

Northwestern University - Department of Economics ( email )

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J. Douglas Zona

Charles River Associates (CRA) ( email )

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