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dc.titleGlobal Giants and Local Stars: How Changes in Brand Ownership Affect Competition
dc.contributor.authorAlviarez, Vanessa
dc.contributor.authorHead, Keith
dc.contributor.authorMayer, Thierry
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.date.available2021-06-15T00:00:00
dc.date.issue2021-06-15T00:00:00
dc.description.abstractWe assess the consequences for consumers in 76 countries of multinational acquisitions in beer and spirits. Outcomes depend on how changes in ownership affect markups versus efficiency. We find that owner fixed effects contribute very little to the performance of brands. On average, foreign ownership tends to raise costs and lower appeal. Using the estimated model, we simulate the consequences of counter-factual national merger regulation. The US beer price index would have been 4-7% higher without divestitures. Up to 30% savings could have been obtained in Latin America by emulating the pro-competition policies of the US and EU.
dc.format.extent70
dc.identifier.doihttp://dx.doi.org/10.18235/0003333
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Global-Giants-and-Local-Stars-How-Changes-in-Brand-Ownership-Affect-Competition.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectCompetitiveness
dc.subjectBeverage Industry
dc.subjectBranding
dc.subject.jelcodeF23 - Multinational Firms • International Business
dc.subject.jelcodeF12 - Models of Trade with Imperfect Competition and Scale Economies • Fragmentation
dc.subject.jelcodeF61 - Microeconomic Impacts
dc.subject.jelcodeL13 - Oligopoly and Other Imperfect Markets
dc.subject.jelcodeK21 - Antitrust Law
dc.subject.keywordsMultinationals;Oligopoly;Markups;Concentration;Firm effects;Brands;Frictions;Mergers and acquisitions;Competition policy
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01149
idb.operationRG-K1098
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