Details

Autor(en) / Beteiligte

• Badruddoza, Syed
• McCluskey, Jill J.
• Carlson, Andrea C.

Titel

Foaming up a milk empire? Projected effects of a dairy merger

Ist Teil von

• Applied economic perspectives and policy, 2022-09, Vol.44 (3), p.1327-1339

Ort / Verlag

Boston, USA: Wiley Periodicals, Inc

Erscheinungsjahr

2022

Link zum Volltext

Quelle

Business Source Ultimate

Beschreibungen/Notizen

• The recent bankruptcy of Dean Foods (DF) and subsequent acquisition of a major share by Dairy Farmers of America (DFA) raised an antitrust complaint which led to DF divesting some assets. The current article empirically analyzes the economic impact of a hypothetical merger between DF and DFA. We use retail scanner data of 2008–2018 under a random‐coefficient discrete choice framework. Assuming a constant marginal cost, we find that the merger may slightly increase retail prices of cow milk products‐‐especially organic ones‐‐across the market and the hypothetical market power of DFA in the long run. Related Content: Should we use antitrust policies on big agriculture? Related Content: Competition issues in the U.S. beef industry