US government agencies in WIC infant-formula procurement auctions receive lower bids and final prices when they are in … (WIC) uses an auction to procure infant formula. Manufacturers bid on the right to be an agency’s sole supplier by offering … a rebate on formula sold through WIC. This paper investigates whether bidders are more aggressive when buyers band …

Although the WIC food assistance program purchases over one-half of all US infant formula, I find the program has … little impact on the prices paid by non-WIC customers. I estimate infant-formula marginal cost and find that it is low … compared to price, implying large price-cost markups. But, the WIC program is not to blame. Instead large price-cost markups …

These files provide a database of rebate bids made by infant formula manufacturers to state WIC agencies. The database …