Great School Milk Conspiracies Revisited Authors
Cite this article as: Scott, F.A. Review of Industrial Organization (2000) 17: 325. doi:10.1023/A:1007879516381 Abstract
This paper revisits a particular case involvingtwo dairy processing companies accused ofrigging bids in northern Kentucky schooldistricts during the 1980s. Evidence andarguments presented to support a conclusion ofovert collusion are reassessed. Analyses ofincumbency rates, market shares, bid levels, biddispersions, bid distance relationships, exactbidding differentials, and “bids from hell”indicate that the two dairies may have beenengaged in tacit collusion instead of overt collusion.
Bid rigging dairy industry price fixing sealed-bid auctions References
Blair, Roger D., and Richard E. Romano (1990) ‘Distinguishing Participants from Nonparticipants in a Price-Fixing Conspiracy: Liabilities and Damages’,
American Business Law Journal, 28, 33–57.
Blair, Roger D., and Richard E. Romano (1997) ‘Identifying Participants in a Price-Fixing Conspiracy: Output and Market Share Tests Reexamined – Reply’,
Review of Industrial Organization, 12, 291–294.
Funderburk, Dale R. (1974) ‘Price Fixing in the Liquid-Asphalt Industry: Economic Analysis versus the "Hot Document"’,
Antitrust Law and Economics Review, 7, 61–74.
Karaaslan, Mehmet E. (1997) ‘Identifying Participants in a Price-Fixing Conspiracy: Output and Market Share Tests Reexamined’,
Review of Industrial Organization, 12, 279–290.
Lanzillotti, Robert F. (1996) ‘The Great Milk Conspiracies of the 1980s’,
Review of Industrial Organization, 11, 413–458.
Pesendorfer, Martin (1996) ‘A Study of Collusion in First Price Auctions’, Mimeo, Yale University.
Porter, Robert H., and J. Douglas Zona (1993) ‘Detection of Bid-Rigging in Procurement Auctions’,
Journal of Political Economy, 101, 518–538.
Porter, Robert H., and J. Douglas Zona (1999) ‘Ohio School Milk Markets: An Analysis of Bidding’,
RAND Journal of Economics, 30, 263–288.
Scherer, F. M., and David Ross (1990)
Industrial Market Structure and Economic Performance. Boston: Houghton Mifflin Company.
Schmalensee, Richard (1989) ‘Inter-Industry Studies of Structure and Performance’, in Richard Schmalensee and Robert D. Willig, eds.,
Handbook of Industrial Organization. Amsterdam: North Holland. Copyright information
© Kluwer Academic Publishers 2000