Taste renaissance, tax reform, and industrial organization of the beer industry.
We develop a theoretical model of the beer industry consisting of two segments: monopolistically competitive heterogeneous craft breweries that compete based on variety and quality and oligopolistically competitive macrobreweries that compete based on economies of scale. We also present empirical ev...
| Publicado en: | Economic Inquiry Vol. 59; no. 4; pp. 1702 - 1723 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
Oct2021
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=152634442&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 152634442 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00952583 EIQ jtl: Economic Inquiry issn: 00952583 maglogo: Y pubinfo: dt: Oct2021 vid: 59 iid: 4 pid: 480 pub: Wiley-Blackwell artinfo: ui: 152634442 10.1111/ecin.12996 ppf: 1702 ppct: 21 formats: fmt: @attributes: type: P size: 685KB tig: atl: Taste renaissance, tax reform, and industrial organization of the beer industry. aug: au: Luckstead, Jeff Devadoss, Stephen affil: School of Economic Sciences, Washington State University, Pullman Washington,, USA Department of Agricultural and Applied Economics, Texas Tech University, Lubbock Texas,, USA su: Consumer preferences Beer industry Tax reform Microbreweries Taste Renaissance sug: subj: Consumer preferences Breweries Alcoholic beverage merchant wholesalers Beer and Ale Merchant Wholesalers Beer, Wine, and Liquor Stores Beer industry Tax reform Microbreweries Taste Renaissance keyword: beer industry craft breweries love‐of‐variety macrobreweries monopolistic and oligopolistic competition quality tax reform beer industry craft breweries love‐of‐variety macrobreweries monopolistic and oligopolistic competition quality tax reform ab: We develop a theoretical model of the beer industry consisting of two segments: monopolistically competitive heterogeneous craft breweries that compete based on variety and quality and oligopolistically competitive macrobreweries that compete based on economies of scale. We also present empirical evidence that, in contrast to the practice in most manufacturing industries, smaller craft breweries pay more for higher quality inputs and charge higher prices. The model is simulated to analyze three counterfactual scenarios: the taste renaissance by expanding consumers' (i) taste for variety and (ii) preference for unique quality beer and (iii) the 2017 tax reform. The taste renaissance scenarios have similar directional effects on the monopolistic segment, but the impacts of an increase in the love‐of‐variety are much stronger than those of an increase in quality. In all three scenarios, the craft segment expands and the macrosegment contracts, but industry‐level sales rise and the aggregate price index declines, benefiting consumers. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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