The random parameters logit model for aggregate data introduced by Berry, Levinsohn, and Pakes (1995) has been a driving force in empirical industrial organization for more than a decade. While these models are identified in theory, identification problems often occur in practice. In this paper...

In times of increasing oil prices and a weak dollar, European companies that focus their business on the US market may find themselves in a weak position. While many businesses can hedge this kind of risk by relocating production to the US, or employing financial remedies, these strategies may...

In this paper the two major breweries in Mexico, Grupo Modelo and Cuauhtémoc Moctezuma Brewering Company (Cervecería Cuahtemoc-Moctezuma) are analyzed which already have long formed part of an oligopoly because these two companies account for more than 99% of beer market in this country. All...

Successful technological change in countries outside the northern Atlantic during the nineteenth and early twentieth centuries depended on entrepreneurial skills, not inventive expertise. In this examination of the Owens automatic glass-bottle-blowing machine in Mexico between 1905 and 1912,...

This article discuss the market conditions prevailing when the merger between Anheuser-Busch InBev and Grupo Modelo (ABI/Modelo) was authorized in 2013. I analyze the cointegration of beer prices in the U.S. and Mexican markets from 2002 to 2012. The cointegration model shows an asymmetric...

Despite its relatively small size, Belgium has historically been considered to have the most diverse array of beer varieties in the world. We explore whether Belgium's institutional history has contributed to its beer diversity. The Belgian area has experienced a heterogeneous and variable array...

The U.S. beer industry has shifted dramatically over the past two decades from a highly concentrated and homogeneous industry to one composed of thousands of small, heterogeneous producers, primarily focused on local markets. This shift evokes the question: how much do consumers prefer locally...

We study the effects of merger on firm entry, product variety and prices in the retail craft beer market in California. We develop a new method to estimate multiple-discrete choice models in order to recover fixed costs. The method is based on bounds of conditional choice probabilities and does...

We investigate the acquisition of Goose Island by Anheuser-Busch InBev to uncover the effects of such an acquisition on pricing and growth in the craft beer industry. We investigate the implications of the acquisition within the context of maverick firms and the unique strategic environment of...

We study the impact of the boycott on Japanese products, initiated in July 2019, in the Korean beer market. First, we find that sales of Japanese beer decreased by 75 percent on average during the 14-month boycott period in the data. Second, the decrease in Japanese beer sales during the boycott...