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The Economics of Beer$
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Johan F.M. Swinnen

Print publication date: 2011

Print ISBN-13: 9780199693801

Published to Oxford Scholarship Online: January 2012

DOI: 10.1093/acprof:oso/9780199693801.001.0001

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Developments in US Merger Policy: The Beer Industry as Lens 1

Developments in US Merger Policy: The Beer Industry as Lens 1

(p.196) 11 Developments in US Merger Policy: The Beer Industry as Lens1
The Economics of Beer

Kenneth G. Elzinga

Anthony W. Swisher

Oxford University Press

This chapter uses the U.S. beer industry as a lens through which to view developments in U.S. antitrust merger policy since 1950. It examines the major structural changes in the industry during this time frame and assesses the extent to which the industry has been shaped by mergers and enforcement of the U.S. antimerger law. It also reviews early antimerger cases in the beer industry decided by the Supreme Court, notably Pabst and Falstaff, and compares these decisions with the modern analytical framework set out in the Horizontal Merger Guidelines issued by the Federal Trade Commission and the U.S. Department of Justice. The chapter shows that while the U.S. beer industry has been significantly reshaped by mergers, the industry also owes its current structure to other market forces, such as scale economies, the development of new products, and the emergence of the craft beer segment.

Keywords:   beer, merger, antimerger, antitrust, Horizontal Merger Guidelines

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