Asymmetric price transmission in the beer market: evidence from two different types of retailer

Seminari Applied

Thiago Cacicedo

Universidad de Alicante

26-Mar-2018

Seminar 3 – 14:30

This paper evaluates the existence of asymmetric price transmission in the Brazilian beer market. The novelty in this work is the evaluation of the phenomenon in two different retail segments: supermarkets and restaurants. Using different econometric methodologies, we show that there is asymmetric price transmission in the supermarket sector, whereas we do not observe it in the restaurant sector. We argue that this result is due to the different characteristics of these markets.