The Impact of Regulatory Change on Retail Pricing: The New York State Milk Price Gouging Law

This study examines the causal effect of a change in administration of the New York State milk price gouging law on retail milk prices. Specifically, we focus on the November 2008 shift from a threshold pricing policy that consisted of monthly announced prices to a fixed margin policy. Using a regression discontinuity approach, we find lower prices and thus increased consumer welfare for retail milk purchasers in New York State. Furthermore, the change in application of the law may have eliminated previously hypothesized coordination in pricing by retailers through a more competitive retail milk environment.


Issue Date:
2014-04
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/165910
Published in:
Agricultural and Resource Economics Review, Volume 43, Number 1
Page range:
178-192
Total Pages:
15




 Record created 2017-04-01, last modified 2017-08-27

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