Understanding the Price Effects of the MillerCoors Joint Venture

• 成果类型: Article
• 署名作者: Miller, Nathan H.; Weinberg, Matthew C.
• 署名单位: Georgetown University; Drexel University
• 刊物名称: ECONOMETRICA
• ISSN/ISSBN: 0012-9682
• DOI: 10.3982/ECTA13333
• 发表日期: 2017
• 页码: 1763-1791
• 关键词: MARKET POWER; conduct parameters; airline industry; MERGER ANALYSIS; LOGIT DEMAND; differentiation; consolidation; STABILITY; collusion; Beer

摘要

We document abrupt increases in retail beer prices just after the consummation of the MillerCoors joint venture, both for MillerCoors and its major competitor, Anheuser-Busch. Within the context of a differentiated-products pricing model, we test and reject the hypothesis that the price increases can be explained by movement from one Nash-Bertrand equilibrium to another. Counterfactual simulations imply that prices after the joint venture are 6%-8% higher than they would have been with Nash-Bertrand competition, and that markups are 17%-18% higher. We relate the results to documentary evidence that the joint venture may have facilitated price coordination.