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Abstract
This paper analyzes strategic retail pricing behavior in fluid milk in Boston and
New York market using reduced form time series analysis. Pricing in Boston market is
found to be more strategic than in the New York market. Plausible reasons can be due to
retail pricing laws, ownership structures of retail chains, and brand loyalty. This paper
also looks at the impact of North East Dairy Compact on retail pricing in Boston.
Strategic pricing behavior in the Boston market changed dramatically and became less
competitive after the Compact.