The impact of regulatory change on retail pricing: The New York state milk price gouging law

Adam N. Rabinowitz, Yizao Liu

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

Abstract

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.

Original languageEnglish (US)
Pages (from-to)178-192
Number of pages15
JournalAgricultural and Resource Economics Review
Volume43
Issue number1
DOIs
StatePublished - Apr 2014

All Science Journal Classification (ASJC) codes

  • Agronomy and Crop Science
  • Economics and Econometrics

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