Chapter

Determinants of the Concentration in Beer Markets in Germany and the United States: 1950–2005

William James Adams

in The Economics of Beer

Published in print October 2011 | ISBN: 9780199693801
Published online January 2012 | e-ISBN: 9780191731884 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199693801.003.0013
Determinants of the Concentration in Beer Markets in Germany and the United States: 1950–2005

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Between 1950 and 2000, the four-firm producer-concentration ratio for beer increased from twenty-two to ninety-five in the United States. In Germany, the four-firm producer-concentration ratio was just twenty-nine in 2000; and the eight-firm ratio in Germany was smaller than the one-firm ratio in the United States. In 2005, after five years of important mergers involving big brewers, the German beer industry was still much less concentrated than its American counterpart. This chapter discusses several candidate explanations for the failure of beer-producer-concentration to rise as much in Germany as in the United States: the relevance of the new technologies to German brewers, the preferences of German consumers, the rules for advertising on German television and other factors, largely absent from the consensus interpretation of American experience.

Keywords: beer; Germany; United States; concentration; technology; consumer preferences; advertising

Chapter.  7901 words. 

Subjects: Economic Systems

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