The price of beer: Some evidence from interstate comparisons
W. Patton Culbertson and
David Bradford
Authors registered in the RePEc Author Service: W. David Bradford
International Journal of Industrial Organization, 1991, vol. 9, issue 2, 275-289
Abstract:
This paper is an empirical exploration into factors which are responsible for differences in the inter-state price of beer. Though primarily a statistical exercise, the current work has implications for policy decisions. In particular, the role of taxes and regulatory constraints on the relationships between brewer, wholesaler, and retailer are highlighted. Using an, as yet, untapped data source, regression analysis indicates that a substantial proportion of the variance in the inter-state price of beer can be explained by demand pressure, transportation costs, and the price of substitutes, as well as taxes and the presence of legally-mandated exclusive territories governing the wholesale distribution of beer.
Date: 1991
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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:9:y:1991:i:2:p:275-289
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