How Do Retailers Price Beer During Periods of Peak Demand? Evidence from Game Weeks of the German Bundesliga

• Autores: Janine Empen, Stephen F. Hamilton
• Localización: Southern Economic Journal, ISSN 0038-4038, ISSN-e 2325-8012, Vol. 81, Nº. 3, 2015, págs. 679-696
• Idioma: inglés
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• Resumen

  • This article considers retail beer pricing during game weeks of the German Bundesliga. German consumers exhibit a high degree of brand-loyalty in their preference for regionally crafted beers, and we exploit the regional brand-loyalty of German beer consumers to identify brand-level demand shocks for beers preferred by the home team s fans and visiting team's fans during Bundesliga game weeks. We find retailer price adjustments at the category level mask a considerably more nuanced pricing behavior at the brand level. Retailers in regions hosting Bundesliga games significantly increase beer prices at the category level during game weeks; however, at the brand level, we find retailers selectively discount prices on the home team's sponsored beers and systematically raise prices on the visiting team's sponsored beers. Our findings are consistent with a "tourist-natives" model of retail pricing during periods of increased demand in the German beer market.