Waves of mergers and acquisitions has left the brewery industry in the United States considerably concentrated. The top two firms, Anheuser-Busch InBev and MillerCoors control more than 60% of the market share. It has become very important to assess the level of competition within the industry. The Panzar-Rosse model is an assessment of competitive conduct that has been widely used to study the competitiveness of the banking industry. The associated measure of competition, called the H-statistic, is obtained as the sum of elasticities of gross revenue with respect to input prices. For this study, the Panzar-Rosse model will be applied to the United States brewery industry and finds that the H-statistic has a negative value, meaning the industry operates under a neoclassical monopolist style or a collusive oligopoly.
Bonner, Matthew R. and Davidsson, Michael, "Application of the Panzar-Rosse Model: An Analysis of the Brewery Industry in the U.S." (2018). Paper Presentations. 2.