The Antitrust Revolution: Economics, Competition, and Policy

By John E. Kwoka Jr.; Lawrence J. White | Go to book overview

CASE 8
Bidding, Bid Rigging,
and School Milk Prices:
Ohiov. Trauth(1994)

Robert H. Porter and J. Douglas Zona


INTRODUCTION

Sometime between May and August every year, school district officials throughout the country independently solicit bids on annual supply contracts for milk and other products. In response to the solicitations, dairies that are in a position to supply school milk submit bids for procurement contracts. The majority of these procurements employ sealed bid auctions, in part because federal guidelines require the purchasing method to be as competitive as possible. Typically, the low bidder is selected to supply milk in half pints to the schools during the following school year. According to a study by the U.S. Department of Agriculture, 86 percent of dairy purchases for the 1996–1997 school year used a formalized bidding procedure. The value of the contracts totaled more than $700 million.

In 1993, representatives of two dairies from Cincinnati, Ohio (Meyer Dairy and Coors Dairy), confessed to rigging bids in school milk auctions in the 1980s. These individuals testified that they had rigged bids with each other and with Trauth Dairy. Their testimony was offered as part of a settlement of the criminal and civil cases against them. Together they paid several million dollars to settle the cases. The bid-rigging scheme described in their testimony was one of respecting incumbencies. If one of the cartel members had served a particular school district in the previous year, then

The authors consulted for the state of Ohio in the matters described in this chapter.

-211-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
The Antitrust Revolution: Economics, Competition, and Policy
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 527

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.