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: 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.


Issue Date:
2014
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/186564
Published in:
Journal of Agricultural and Resource Economics, Volume 39, Number 2
Page range:
174-187
Total Pages:
14
Series Statement:
Volume 29
2




 Record created 2017-04-01, last modified 2017-08-28

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