Beer Snobs Do Exist: Estimation of Beer Demand by Type
Although mass-produced beers still represent the vast majority of U.S. beer sales, there has been a significant growth trend in the craft beer segment. This study analyzes the demand for beer as a differentiated product and estimates own-price, cross-price, and income elasticities for beer by type:...
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| Format: | Article |
| Language: | English |
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Western Agricultural Economics Association
2014-08-01
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| Series: | Journal of Agricultural and Resource Economics |
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| Online Access: | https://ageconsearch.umn.edu/record/186564 |
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Article |
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doaj-0585dc0375fa4b239e8392097722581c2020-11-25T02:06:00ZengWestern Agricultural Economics AssociationJournal of Agricultural and Resource Economics1068-55022327-82852014-08-0139217418710.22004/ag.econ.186564186564Beer Snobs Do Exist: Estimation of Beer Demand by TypeDaniel Toro-GonzalezJill J. McCluskeyRon MittelhammerAlthough mass-produced beers still represent the vast majority of U.S. beer sales, there has been a significant growth trend in the craft beer segment. This study analyzes the demand for beer as a differentiated product and estimates own-price, cross-price, and income elasticities for beer by type: craft beer, mass-produced beer, and imported beer. We verify that beer is a normal good with a considerably inelastic demand and also find that the cross-price elasticity across types of beer is close to zero. The results suggest that there are effectively separate markets for beer by type.https://ageconsearch.umn.edu/record/186564craft beerdemand analysisdifferentiated products |
| collection |
DOAJ |
| language |
English |
| format |
Article |
| sources |
DOAJ |
| author |
Daniel Toro-Gonzalez Jill J. McCluskey Ron Mittelhammer |
| spellingShingle |
Daniel Toro-Gonzalez Jill J. McCluskey Ron Mittelhammer Beer Snobs Do Exist: Estimation of Beer Demand by Type Journal of Agricultural and Resource Economics craft beer demand analysis differentiated products |
| author_facet |
Daniel Toro-Gonzalez Jill J. McCluskey Ron Mittelhammer |
| author_sort |
Daniel Toro-Gonzalez |
| title |
Beer Snobs Do Exist: Estimation of Beer Demand by Type |
| title_short |
Beer Snobs Do Exist: Estimation of Beer Demand by Type |
| title_full |
Beer Snobs Do Exist: Estimation of Beer Demand by Type |
| title_fullStr |
Beer Snobs Do Exist: Estimation of Beer Demand by Type |
| title_full_unstemmed |
Beer Snobs Do Exist: Estimation of Beer Demand by Type |
| title_sort |
beer snobs do exist: estimation of beer demand by type |
| publisher |
Western Agricultural Economics Association |
| series |
Journal of Agricultural and Resource Economics |
| issn |
1068-5502 2327-8285 |
| publishDate |
2014-08-01 |
| description |
Although mass-produced beers still represent the vast majority of U.S. beer sales, there has been a significant growth trend in the craft beer segment. This study analyzes the demand for beer as a differentiated product and estimates own-price, cross-price, and income elasticities for beer by type: craft beer, mass-produced beer, and imported beer. We verify that beer is a normal good with a considerably inelastic demand and also find that the cross-price elasticity across types of beer is close to zero. The results suggest that there are effectively separate markets for beer by type. |
| topic |
craft beer demand analysis differentiated products |
| url |
https://ageconsearch.umn.edu/record/186564 |
| work_keys_str_mv |
AT danieltorogonzalez beersnobsdoexistestimationofbeerdemandbytype AT jilljmccluskey beersnobsdoexistestimationofbeerdemandbytype AT ronmittelhammer beersnobsdoexistestimationofbeerdemandbytype |
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