Ohio School Milk Markets: An Analysis of Bidding

Porter, Robert H.; Zona, J. Douglas

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Ohio School Milk Markets: An Analysis of Bidding

NBER Working Paper No. w6037

55 Pages Posted: 20 Jul 2000 Last revised: 1 Jan 2023

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)

There are 2 versions of this paper

Date Written: May 1997

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.

Suggested Citation: Suggested Citation

Porter, Robert H. and Zona, J. Douglas, Ohio School Milk Markets: An Analysis of Bidding (May 1997). NBER Working Paper No. w6037, Available at SSRN: https://ssrn.com/abstract=226447