Home Bias in U.S. Beer Consumption

No 148292, Working Paper series from University of Connecticut, Charles J. Zwick Center for Food and Resource Policy

Abstract: We apply the Berry, Levinsohn, and Pakes (1995) market equilibrium model to data from 30 brands of beers sold in 12 U.S. cities over 20 quarters (1988-92) to estimate the consumers’ taste for beer characteristics (price, alcohol content, and calories) as well as for the cultural region of origin (USA, Anglo-European, Germanic, and countries bordering the U.S.). Consumer heterogeneity is allowed with respect to age and income. Overall we end up with 7,200 beer brand observations (30x12x20) and 13,920 (58 random draws x 12 x 20) consumer observations. Empirical results indicate that indeed there is home bias with respect to foreign beers. Home bias is less accentuated among older and more affluent individuals.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Pages: 15
Date: 2011-08
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Related works:
Journal Article: Home Bias in US Beer Consumption (2012)
Working Paper: Home Bias in U.S. Beer Consumption (2011)
Working Paper: Home Bias in U.S. Beer Consumption (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ucozwp:148292

DOI: 10.22004/ag.econ.148292

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