The Growth of Television and the Decline of Local Beer
This chapter describes how the changing nature of advertising brought about by television advantaged large brewers over smaller local ones, leading to a massive shift from local brewing of local beers to a consolidated national market dominated by a handful of firms. Using market-level data on television penetration, local breweries and brewery production from 1945–60, it is shown that increases in television penetration are associated with fewer local breweries and less local beer production. The results suggest ways that media markets and information technology can affect markets for local products.
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