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The price of beer: Some evidence from interstate comparisons

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  • Patton Culbertson, W.
  • Bradford, David

Abstract

This paper is an empirical exploration into factors which are responsible for differences in the inter-state price of beer. Though primarily a statistical exercise, the current work has implications for policy decisions. In particular, the role of taxes and regulatory constraints on the relationships between brewer, wholesaler, and retailer are highlighted. Using an, as yet, untapped data source, regression analysis indicates that a substantial proportion of the variance in the inter-state price of beer can be explained by demand pressure, transportation costs, and the price of substitutes, as well as taxes and the presence of legally-mandated exclusive territories governing the wholesale distribution of beer.

Suggested Citation

  • Patton Culbertson, W. & Bradford, David, 1991. "The price of beer: Some evidence from interstate comparisons," International Journal of Industrial Organization, Elsevier, vol. 9(2), pages 275-289, June.
  • Handle: RePEc:eee:indorg:v:9:y:1991:i:2:p:275-289
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    Cited by:

    1. Salvatore Piccolo & Markus Reisinger, 2011. "Exclusive Territories and Manufacturers' Collusion," Management Science, INFORMS, vol. 57(7), pages 1250-1266, July.
    2. Chia-Wen Chen & Shiou Shieh, 2016. "Does Exclusive Dealing Matter? Evidence from Distribution Contract Changes in The U.S. Beer Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 64(3), pages 411-435, September.
    3. Rojas Christian, 2012. "The Effect of Mandated Exclusive Territories in the US Brewing Industry," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-41, May.
    4. John Asker, 2004. "Diagnosing Foreclosure Due to Exclusive Dealing," Working Papers 04-36, New York University, Leonard N. Stern School of Business, Department of Economics.
    5. John Asker, 2016. "Diagnosing Foreclosure due to Exclusive Dealing," Journal of Industrial Economics, Wiley Blackwell, vol. 64(3), pages 375-410, September.
    6. Jerry Ellig & Alan E. Wiseman, 2004. "Interstate Trade Barriers and Potential Regulatory Competition : The Case of Virginia's Direct Wine Shipping Ban," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 19(Spring 20), pages 26-42.

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