Canned: Market Power and the Prison Commissary

• In Event: Crime & Drugs, Student Session

Abstract

The prison commissary was established on August 1, 1930. Prior to its inception, prisons lacked formal means to control the consumption of goods available to the incarcerated. The prison commissary has since provided a marketplace for individuals who are otherwise restricted from economic activity. In recent years, prison cost-shifting practices have meant a reduction in provisions and an increase in the importance of commissary systems. We provide an economic analysis of the market for prison commissaries. We begin with a demand model for soda that utilizes NeilsonIQ scanner data, building upon it the uniquely constructed dataset on soda prices and purchases within the California Prison commissary system, obtained via public records requests. Using San Quentin as a representative prison, we estimate markups on sodas in the prison commissary markets. We find that, for sodas, the markups within the prisons are remarkably similar to those faced in the standard marketplace. Taken at face value, our estimates suggest that though prisons in California hold considerable market power over the incarcerated and do wield it, they do not exert said power to its fullest extent.

Authors

• Frankie Lin, University of Wisconsin-Madison
  Presenting Author

• Leah Anne Pomerantz, University of Wisconsin-Madison
  Non-Presenting Co-Author

• Zohal E Barsi, University of Wisconsin-Madison
  Non-Presenting Co-Author