Has Anheuser-Busch Let the Steam Out of Craft Beer? The Economics of Acquiring Craft Brewers

Elzinga, Kenneth G.; McGlothlin, Alexander

doi:10.2139/ssrn.3399701

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Has Anheuser-Busch Let the Steam Out of Craft Beer? The Economics of Acquiring Craft Brewers

53 Pages Posted: 27 Jun 2019

See all articles by Kenneth G. Elzinga

Kenneth G. Elzinga

University of Virginia - Department of Economics

Alexander McGlothlin

University of Kentucky, Gatton College of Business and Economics, Department of Economics, Students

Date Written: May 2, 2019

Abstract

We investigate the acquisition of Goose Island by Anheuser-Busch InBev to uncover the effects of such an acquisition on pricing and growth in the craft beer industry. We investigate the implications of the acquisition within the context of maverick firms and the unique strategic environment of the three-tier system.

Keywords: antitrust, merger analysis, beer, oligopoly, imperfect competition, maverick firms

JEL Classification: L13, L22, L40, L66

Suggested Citation: Suggested Citation

Elzinga, Kenneth G. and McGlothlin, Alexander, Has Anheuser-Busch Let the Steam Out of Craft Beer? The Economics of Acquiring Craft Brewers (May 2, 2019). Available at SSRN: https://ssrn.com/abstract=3399701 or http://dx.doi.org/10.2139/ssrn.3399701