IDEAS home Printed from https://ideas.repec.org/p/zwi/fpcrep/090.html
   My bibliography  Save this paper

Market Power and Price Competition in U.S. Brewing

Author

Listed:
  • Christian Rojas

    () (University of Massachusetts)

Abstract

This paper analyzes the degree of market power in the U.S. brewing industry as measured by the closeness between the observed pricing behavior of ?firms and the equilibrium prices predicted by various pricing models: Bertrand-Nash, leadership, and collusion. Price leadership focuses on the largest U.S. beer producer Anheuser-Busch and its heavily marketed brand Budweiser whereas collusion focuses on the three largest brewers. Results indicate that Bertrand-Nash predicts the pricing behavior of fi?rms more closely than other models. Concerns about non-competitive pricing of the forms studied here should hence be low in this industry. Despite its closeness to the observed pricing behavior, Bertrand- Nash under-predicts prices of more price-elastic brands and over-predicts prices of less price-elastic brands.

Suggested Citation

  • Christian Rojas, 2005. "Market Power and Price Competition in U.S. Brewing," Food Marketing Policy Center Research Reports 090, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
  • Handle: RePEc:zwi:fpcrep:090
    as

    Download full text from publisher

    File URL: http://fmpc.uconn.edu/publications/rr/rr90.pdf
    Download Restriction: no

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zwi:fpcrep:090. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/dauctus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.