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Market integration and transportation: beer in Lao PDR

Andersson, Magnus LU and Kokko, Ari (2013) In The Global Brewery Industry Markets, Strategies, and Rivalries
Abstract
To study the process of domestic market integration in Lao People’s

Democratic Republic (hereafter Lao PDR), this chapter explores the

spatial variation in beer prices and its relationship with transport costs and various local market characteristics. More specifically, we study how the price of a 640 ml bottle of Beer Lao varies across the country. In a well- integrated market, we expect the law of one price to hold. Controlling for transaction costs, a homogeneous product should have the same price throughout the market. Sellers trying to charge a higher price will find that potential buyers turn to competing suppliers.
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Chapter in Book/Report/Conference proceeding
publication status
published
subject
in
The Global Brewery Industry Markets, Strategies, and Rivalries
editor
Gammelgaard, Jens; Dörrenbächer, Christoph; and
publisher
Edward Elgar Publishing
ISBN
978 1 78100 635 1
language
English
LU publication?
yes
id
a47cb90a-92eb-4e5e-96fe-84f618872ecb (old id 3810029)
date added to LUP
2013-06-17 12:52:33
date last changed
2016-04-16 08:36:42
@inbook{a47cb90a-92eb-4e5e-96fe-84f618872ecb,
  abstract     = {To study the process of domestic market integration in Lao People’s<br/><br>
Democratic Republic (hereafter Lao PDR), this chapter explores the<br/><br>
spatial variation in beer prices and its relationship with transport costs and various local market characteristics. More specifically, we study how the price of a 640 ml bottle of Beer Lao varies across the country. In a well- integrated market, we expect the law of one price to hold. Controlling for transaction costs, a homogeneous product should have the same price throughout the market. Sellers trying to charge a higher price will find that potential buyers turn to competing suppliers.},
  author       = {Andersson, Magnus and Kokko, Ari},
  editor       = {Gammelgaard, Jens and Dörrenbächer, Christoph},
  isbn         = {978 1 78100 635 1},
  language     = {eng},
  publisher    = {Edward Elgar Publishing},
  series       = {The Global Brewery Industry Markets, Strategies, and Rivalries},
  title        = {Market integration and transportation: beer in Lao PDR},
  year         = {2013},
}