Proliferation of Brewers’ Brands and Price Uniformity in Canadian Beer Markets

Proliferation of Brewers’ Brands and Price Uniformity in Canadian Beer Markets In this paper, we study retail pricing in Canadian beer markets, where access to the liquor distribution system and the retail price list is restricted by government ownership and control of the system. We consider alternative explanations for price uniformity in the differentiated beer products market. While an analysis of retail beer price data from six Canadian provinces for a 10-year period shows that no single explanation of price uniformity strongly dominates the others, some of the results are consistent with menu cost and demand uncertainty theories of price uniformity. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

Proliferation of Brewers’ Brands and Price Uniformity in Canadian Beer Markets

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Publisher
Springer US
Copyright
Copyright © 2012 by Springer Science+Business Media, LLC.
Subject
Economics / Management Science; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1007/s11151-012-9357-5
Publisher site
See Article on Publisher Site

Abstract

In this paper, we study retail pricing in Canadian beer markets, where access to the liquor distribution system and the retail price list is restricted by government ownership and control of the system. We consider alternative explanations for price uniformity in the differentiated beer products market. While an analysis of retail beer price data from six Canadian provinces for a 10-year period shows that no single explanation of price uniformity strongly dominates the others, some of the results are consistent with menu cost and demand uncertainty theories of price uniformity.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Aug 9, 2012

References

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