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Comments on: Why are they making my beer more expensive? http://www.tvhe.co.nz/2009/05/06/why-are-they-making-my-beer-more-expensive/ The Visible Hand in Economics Thu, 07 May 2009 08:27:43 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Beeronomics « Hefe Vice http://www.tvhe.co.nz/2009/05/06/why-are-they-making-my-beer-more-expensive/#comment-19585 Thu, 07 May 2009 08:27:43 +0000 http://www.tvhe.co.nz/?p=3777#comment-19585 […] Further in the study of Political Beerconomy, my friend Brad Taylor has a piece titled Bootleggers and Baptists which links to a post at the Visible Hand in Economics where Matt Nolan asks Why are they making my beer more expensive? […]

]]> By: Sins of minority visited on majority « The Inquiring Mind http://www.tvhe.co.nz/2009/05/06/why-are-they-making-my-beer-more-expensive/#comment-19576 Thu, 07 May 2009 00:05:35 +0000 http://www.tvhe.co.nz/?p=3777#comment-19576 […] Liquor pricing, Glengarry, social ills, product availability, supermarkets by adamsmith1922 Matt Nolan commented on the 2 main supermarket chains colluding over alcohol pricing and their citing social factors to excuse their collusion. […]

]]> By: TVHE » How dare they compete! http://www.tvhe.co.nz/2009/05/06/why-are-they-making-my-beer-more-expensive/#comment-19573 Wed, 06 May 2009 22:33:34 +0000 http://www.tvhe.co.nz/?p=3777#comment-19573 […] on alcohol retailing provides this “beautiful” quote (FYI this follows on from a previous post): The end of loss-leading was welcomed by Glengarry product manager Liz Wheaden, who said the […]

]]> By: Matt Nolan http://www.tvhe.co.nz/2009/05/06/why-are-they-making-my-beer-more-expensive/#comment-19572 Wed, 06 May 2009 22:24:15 +0000 http://www.tvhe.co.nz/?p=3777#comment-19572 @rauparaha

Sorry I don’t think I quite followed you here as I can be a bit slow at times 🙂 .

I don’t think we can prove intent – so we couldn’t fine the supermarkets for tacit collusion in this case. However, the CC could become involved in working on the market structure as a result of the tacit collusion methinks.

]]> By: rauparaha http://www.tvhe.co.nz/2009/05/06/why-are-they-making-my-beer-more-expensive/#comment-19571 Wed, 06 May 2009 22:21:03 +0000 http://www.tvhe.co.nz/?p=3777#comment-19571 Interesting. I’m surprised that it is an offence with strict liability, though: it just seems too serious for that at first glance.

]]> By: Matt Nolan http://www.tvhe.co.nz/2009/05/06/why-are-they-making-my-beer-more-expensive/#comment-19570 Wed, 06 May 2009 22:00:18 +0000 http://www.tvhe.co.nz/?p=3777#comment-19570 @rauparaha

Yes. Even if it is just an implicit movement that they do because “it works good” it is still anti-competitive. It can be anti-competitive even if they don’t realise it – for sure.

]]> By: rauparaha http://www.tvhe.co.nz/2009/05/06/why-are-they-making-my-beer-more-expensive/#comment-19569 Wed, 06 May 2009 21:58:15 +0000 http://www.tvhe.co.nz/?p=3777#comment-19569 I totally agree that it might move them to the collusive outcome. But if there’s no intent to behave in an anti-competitive fashion then is it collusion?

]]> By: Matt Nolan http://www.tvhe.co.nz/2009/05/06/why-are-they-making-my-beer-more-expensive/#comment-19568 Wed, 06 May 2009 21:50:03 +0000 http://www.tvhe.co.nz/?p=3777#comment-19568 @rauparaha

Huh? Are we talking about them both increasing prices based on government pressure.

I would term that tacit collusion – I would say that the government pressure provided a focal point (or more likely reduced the chance they would get in trouble for collusion) and so led to them moving for the collusive outcome.

]]> By: rauparaha http://www.tvhe.co.nz/2009/05/06/why-are-they-making-my-beer-more-expensive/#comment-19567 Wed, 06 May 2009 21:46:33 +0000 http://www.tvhe.co.nz/?p=3777#comment-19567 But it wouldn’t be tacit collusion: that’s just where they don’t explicitly agree to collude. It’d be an outcome like collusion that they didn’t collude to get to.

]]> By: Matt Nolan http://www.tvhe.co.nz/2009/05/06/why-are-they-making-my-beer-more-expensive/#comment-19566 Wed, 06 May 2009 21:33:11 +0000 http://www.tvhe.co.nz/?p=3777#comment-19566 @rauparaha

I thought tacit collusion was still illegal …

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