Advertising Restrictions and Concentration: The Case of Malt Beverages

Tim Sass () and David S Saurman

The Review of Economics and Statistics, 1995, vol. 77, issue 1, 66-81

Abstract: The relationship between state-imposed advertising restrictions and state-level market concentration in the malt beverage industry is examined. The authors find that the presence of proscriptions on price advertising significantly increases market concentration at the state level, both absolutely and relative to a measure of national concentration. The evidence also indicates that banning local nonprice advertising in addition to price advertising yields no marginal significant change in either measure of state-level concentration. Analysis of individual brewers' market shares suggests that large national brewers gain at the expense of smaller brewers when price advertising is restricted. Copyright 1995 by MIT Press.

Date: 1995
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