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Detecting Market Competition in the Japanese Beer Industry

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  • Craig Parsons
  • Xavier Vanssay

Abstract

We investigate various characteristics, including firm-level panel data, of the Japanese beer market over time (over 30 years) to determine the level and nature of competition. Next, we conduct two sets of regressions using market share and firm-level accounting data in a variation of Boone’s (Econ J 118:1245–1261, 2008a ; J Inst Theor Econ 164:587–611, 2008b ) measure of competition. While traditional indicators (very high market concentration, little or no overt price competition) suggest that Japanese beer firms do not compete, Boone-style regressions yield strong evidence of competitive behavior. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Craig Parsons & Xavier Vanssay, 2014. "Detecting Market Competition in the Japanese Beer Industry," Journal of Industry, Competition and Trade, Springer, vol. 14(1), pages 123-143, March.
    • Handle: RePEc:kap:jincot:v:14:y:2014:i:1:p:123-143
    DOI: 10.1007/s10842-013-0166-9
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    Cited by:

    1. Xuan Dong Nguyen & Xavier de Vanssay & Craig Parsons, 2015. "The Japanese Automobile Tyre Industry under Scrutiny," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 22(1), pages 141-162, February.
    2. Ariel A. Casarin & Magdalena Cornejo & María Eugenia Delfino, 2020. "Market Power Absent Merger Review: Brewing in Perú," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 56(3), pages 535-556, May.
    3. Nakajima, Toru, 2016. "Can non-alcoholic beer be a substitute for beer? Evidence from differentiated product demand model estimation using scanner data," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235734, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    New Empirical Industrial Organization; Beer; Monopoly; Collusion; Competition; Japan; L13; L66;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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