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Competition And Price Wars In The U.S. Brewing Industry, Jayendra Gokhale, Victor J. Tremblay
Competition And Price Wars In The U.S. Brewing Industry, Jayendra Gokhale, Victor J. Tremblay
Accounting, Economics, Finance, and Information Sciences - Daytona Beach
The behavior of the macro or mass-production segment of the U.S. brewing industry appears to be paradoxical. Since the end of Prohibition in 1934, the number of independent brewer has continuously declined while the major national brewers, such as Anheuser-Busch, Miller, and Coors, have gained market share. In spite of this decline in the number of competitors, profits and market power have remained low in brewing. Iwasaki et al. (2008) explain this result by providing evidence that changes in marketing and production technologies favored larger brewers and forced the industry into a war of attrition, in which only a handful …