Abstract
Between 1996 and 2007, per capita beer consumption in Russia more than quintupled, making beer the most important alcoholic drink in Russia today and transforming Russia into the world’s third largest beer market. We study the role of peer effects in this rapid adoption of beer. In particular, we argue that the initial ‘shocks’ of improvements in quality and increased advertising were magnified through peer effects. Using detailed data from the Russian Longitudinal Monitoring Survey, we analyze the individual choice to drink beer, controlling for a wide range of potential factors. Our results indicate that peer effects played an important role as a ‘transmission mechanism’ in persuading consumers to start drinking beer. In contrast, changes in prices and incomes seem to have played only a minor role.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
