Review of Industrial Organization

, Volume 17, Issue 3, pp 325-341

First online:

Great School Milk Conspiracies Revisited

  • Frank A. ScottJr.Affiliated withDepartment of Economics, University of Kentucky

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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