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Beer and the Tie: Did Divestiture of Brewer-Owned Public Houses Lead to Higher Beer Prices?

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  • Slade, Margaret E

Abstract

In 1989, the United Kingdom Monopolies and Mergers Commission (MMC) recommended measures that eventually led brewers to divest themselves of 14,000 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.

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  • Slade, Margaret E, 1998. "Beer and the Tie: Did Divestiture of Brewer-Owned Public Houses Lead to Higher Beer Prices?," Economic Journal, Royal Economic Society, vol. 108(448), pages 565-602, May.
  • Handle: RePEc:ecj:econjl:v:108:y:1998:i:448:p:565-602
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