Hurdles to hops: How self‐distribution laws affect craft brewery output.

We examine the impact of laws that allow breweries to bypass distributors. We construct a model of heterogeneous firms where some states require pairing with distributors who charge fixed and marginal costs in return for additional market share. The model predicts that states without such requiremen...

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Publicado en:Contemporary Economic Policy Vol. 43; no. 2; pp. 292 - 319
Autores principales: Harrison, James M., Glaser, Darrell J.
Formato: Artículo
Publicado: Wiley-Blackwell Apr2025
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Hurdles to hops: How self‐distribution laws affect craft brewery output.
      aug:
        au:
          Harrison, James M.
          Glaser, Darrell J.
        affil: Department of Economics, United States Naval Academy, Annapolis Maryland, , USA
      su:
        Microbreweries
        Brewing industry
        Direct costing
        Market share
        Breweries
      sug:
        subj:
          Breweries
          Microbreweries
          Brewing industry
          Direct costing
          Market share
          Breweries
      keyword:
        brewing industry
        distribution
        intermediaries
        regulation
        brewing industry
        distribution
        intermediaries
        regulation
      ab: We examine the impact of laws that allow breweries to bypass distributors. We construct a model of heterogeneous firms where some states require pairing with distributors who charge fixed and marginal costs in return for additional market share. The model predicts that states without such requirements have higher output and employment due to greater entry and firm‐level production. To test this model, we exploit the adoption of self‐distribution laws from 2008 to 2019. We find that states that do not require a distributor have higher brewery output and employment, and that this is primarily driven by a greater entry of breweries.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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