Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/237448 
Year of Publication: 
2021
Series/Report no.: 
IDB Working Paper Series No. IDB-WP-1149
Publisher: 
Inter-American Development Bank (IDB), Washington, DC
Abstract: 
We 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.
Subjects: 
Multinationals
Oligopoly
Markups
Concentration
Firm effects
Brands
Frictions
Mergers and acquisitions
Competition policy
JEL: 
F12
F23
F61
K21
L13
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.