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NATIONAL TELEVISION AND THE MARKET FOR LOCAL PRODUCTS: THE CASE OF BEER -super-

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  • LISA M. GEORGE

Abstract

Information technology lowers the cost of distributing information to dispersed consumers. Because national firms reap larger benefits from new media than firms serving only local consumers, media innovations may reduce the market for local products. This paper considers the effect of television on the market for local beer. Using market-level data on television penetration, local breweries and brewery production from 1945-1960, results show that increases in television penetration are associated with fewer local breweries and less local beer production. The results indicate that the industrial organization of media markets can affect the structure of markets for local products. Copyright 2009 The Authors. Journal compilation 2009 Blackwell Publishing Ltd. and the Editorial Board of The Journal of Industrial Economics.

Suggested Citation

  • Lisa M. George, 2009. "NATIONAL TELEVISION AND THE MARKET FOR LOCAL PRODUCTS: THE CASE OF BEER -super-," Journal of Industrial Economics, Wiley Blackwell, vol. 57(1), pages 85-111, March.
  • Handle: RePEc:bla:jindec:v:57:y:2009:i:1:p:85-111
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    References listed on IDEAS

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    Cited by:

    1. Baker Matthew J. & George Lisa M, 2010. "The Role of Television in Household Debt: Evidence from the 1950's," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-38, May.
    2. Damiaan Persyn & Johan F.M.Swinnen & Stijn Vanormelingen, 2010. "Belgian Beers : Where History meets Globalization," LICOS Discussion Papers 27110, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    3. Vinish Shrestha & Sara Markowitz, 2016. "The Pass-Through Of Beer Taxes To Prices: Evidence From State And Federal Tax Changes," Economic Inquiry, Western Economic Association International, vol. 54(4), pages 1946-1962, October.
    4. Loretz, Simon & Oberhofer, Harald, 2014. "When Helping the Small Hurts the Middle: Beer Excise Duties and Market Concentration," Working Papers in Economics 2014-5, University of Salzburg.
    5. Thomas N. Hubbard & Michael J. Mazzeo, 2017. "When Demand Increases Cause Shakeouts," NBER Working Papers 23639, National Bureau of Economic Research, Inc.
    6. Erik Strøjer Madsen & Yanqing Wu, 2014. "Globalization of Brewing and Economies of Scale," Economics Working Papers 2014-23, Department of Economics and Business Economics, Aarhus University.

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