Do dogs see in black and white?

It is a common misconception that dogs see only in black and white. Research has found that dogs have colour-sensitive cones in their eyes, but not as many as a human's. Humans with normal vision have 3 types of cones, while dogs and cats have only 2 types of cones so they do not experience the same spectrum of colour vision that we do.

It is thought that dogs can see blues and yellows the best and that they are able to differentiate between various shades of blue and violet, but that they have difficulty distinguishing reds from green. They are considered similar to red-green colour-blind humans.

Another Answer
According to physics and physiology - dogs do not have as many cones present in the eye compared to a human's eye. Cones are what detects color. So, no they don't see fully in black in white but they don't see fully in color either, but definitely in a limited colour spectrum than full color due to rod/cone ratio. (Rods account for sensitivity to brightness and do not focus in colour). So dogs can see better in low light than a human but less colour, similar to a sepia picture - the yellowish greyish hint to a black and white photo, especially for colors like red or orange. Dogs cannot see red, those cones are not found in animals.