Quick problem: if entry is sequential — you’re one of three successful bidders for setting up an ice cream stand on a beach and you have to put in wiring — where do you put your stand if you set up first? second? of course, knowing that, you know where you set up third?
I posed a query: beer consumption exploded from the late 1950s until about 1980. What should have happened to the number of beer producers during this interval? Now Chapter 2 is on demand and supply elasticities, the basic environment; concentration is the topic for Chapter 3 of Tremblay & Tremblay and (tentatively) a week from Friday on the syllabus in parallel to material in Martin. But think about the issue.
A beer story from today’s Bloomberg on the plans of Sapporo Brewing [<== link] to increase revenues. Now Sapporo is a Japanese firm and the domestic market resembles that of the US. So what options do they have?
I’ll intersperse stories of other industries as the term progresses. Start looking for a topic for your term paper. I’ve had ones ranging from (i) law firm mergers and (ii) competition between gaming systems to (iii) individual firms and (iv) standard consumer products. Policy topics are possible, but not hard; we won’t cover much in class, and what we do cover (various technology topics) won’t be until later in the term.
Late addition: I searched for recent articles = “beer 2012” on Bloomberg, and found the following: