Sunday, September 6, 2009

Beer & Anti-trust

This article may not be useful to your classrooms, on the other hand, it may. It was in this morning's Washington Post and examines the recent decision by two major brewers to raise the price of their products, despite the recession and falling sales. The tone seems to beg for anti-trust action, arguing market concentration. But a counter-argument would be that such a move makes microbrews and alternative beverages more competitive, thus encouraging substitution and the risk of a resulting permanent loss in market share. Perhaps you can use the information to set up a "hypothetical" without naming the product or the companies. Just a suggestion.

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