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Proliferation of Brewers’ Brands and Price Uniformity in Canadian Beer Markets

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  • Andrew Eckert
  • Douglas West

Abstract

In this paper, we study retail pricing in Canadian beer markets, where access to the liquor distribution system and the retail price list is restricted by government ownership and control of the system. We consider alternative explanations for price uniformity in the differentiated beer products market. While an analysis of retail beer price data from six Canadian provinces for a 10-year period shows that no single explanation of price uniformity strongly dominates the others, some of the results are consistent with menu cost and demand uncertainty theories of price uniformity. Copyright Springer Science+Business Media, LLC. 2013

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  • Andrew Eckert & Douglas West, 2013. "Proliferation of Brewers’ Brands and Price Uniformity in Canadian Beer Markets," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 42(1), pages 63-83, February.
    • Handle: RePEc:kap:revind:v:42:y:2013:i:1:p:63-83
    DOI: 10.1007/s11151-012-9357-5
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    Cited by:

    1. Courty, Pascal & Nasiry, Javad, 2015. "Loss Aversion and the Uniform Pricing Puzzle for Vertically Differentiated Products," CEPR Discussion Papers 10523, C.E.P.R. Discussion Papers.
    2. Gianluca Antonecchia & Ajay Bhaskarabhatla, 2023. "How firms compete when they set identical prices: Nonprice strategies in the Indian biscuit industry," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 32(4), pages 733-756, October.
    3. Pascal Courty & Javad Nasiry, 2018. "Loss aversion and the uniform pricing puzzle for media and entertainment products," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 66(1), pages 105-140, July.
    4. 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.

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