The Seattle-Tacoma consumers have been paying higher prices for fresh milk than consumers in other Western states of United States. For instance, the retail price for whole milk averaged $3.27/gallon during the period of April 1999- April 2003 in Seattle-Tacoma, while it did not go beyond...

This paper estimates the effect of the price war on the fluid milk demand in the Dallas-Fort Worth market and assesses the supermarket pricing conduct through estimating the price-cost margins of the retailers in selling fluid milk, and how these margins vary with the price war. The findings...