Market share of established national brewers

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1. How do you think the new limits on beer advertising will affect the market share of established national brewers relative to foreign entrants and regional competitors? How would the new limits on beer advertising affect the intensity of price competition?

2. Local governments are responsible for enforcing various aspects of the new regulation. However, they have direct (through ownership) and indirect (through local tax) interest in the profits of local broadcasters. Assess the likely effectiveness of local enforcement.

3. It is socially desirable to regulate activities that generate negative externalities? What aspects of Regulation 17 can be justified in terms of regulating negative externalities?

Reference no: EM132346158

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