Regulation and purchase diversity: Empirical evidence from the U.S. alcohol market
Journal
International Review of Law and Economics
Journal Volume
68
Date Issued
2021
Author(s)
Rickard B.J.
Abstract
The repeal of the Prohibition Act in 1933 introduced state-level regulations on the retail availability of alcoholic beverages. Recently there has been much debate among industry stakeholders on how changes to these laws will affect consumer choices. We develop an index to measure purchase diversity for alcoholic beverages that considers similarities in product attributes. Following a set of households that moved between regulatory environments during the 2004 to 2016 period, we examine the effect of alcohol availability on purchase diversity. Our key finding shows that consumers further diversify their product selections in states that allow alcohol sales in grocery stores. ? 2021 Elsevier Inc.
Subjects
Alcoholic beverages
Consumer behavior
Diversification index
Regulation
Retail availability
SDGs
Type
journal article