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Beer and the Tie: Did Divestiture Lead to Higher Prices?

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Abstract

In 1989, the United Kingdom Monopolies and Mergers Commission (MMC) recommended measures that eventually led brewers to divest themselves of 14000 public houses. The MMC claimed that their recommendations would lower retail prices and increase consumer choice. Since that time, however, retail prices have risen. This paper contains an econometric analysis of the transition period. The analysis is based on a model of the relationship between retail price and retail- organizational form that emphasizes how exclusive-dealing clauses and strategic factors interact.

Suggested Citation

  • Slade, M., 1996. "Beer and the Tie: Did Divestiture Lead to Higher Prices?," G.R.E.Q.A.M. 96b07, Universite Aix-Marseille III.
    • Handle: RePEc:fth:aixmeq:96b07
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    More about this item

    Keywords

    PRICES; INVESTMENTS; BEER; GAMES; ENTERPRISES;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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