Differences in liquor prices between control state-operated and license-state retail outlets in the United States

Michael Siegel, William Dejong, Alison B. Albers, Timothy S. Naimi, David H. Jernigan

Research output: Contribution to journalArticle

Abstract

Aims: This study aims to compare the average price of liquor in the United States between retail alcohol outlets in states that have a monopoly ('control' states) with those that do not ('licence' states). Design: A cross-sectional study of brand-specific alcohol prices in the United States. Setting: We determined the average prices in February 2012 of 74 brands of liquor among the 13 control states that maintain a monopoly on liquor sales at the retail level and among a sample of 50 license-state liquor stores, using their online-available prices. Measurements: We calculated average prices for 74 brands of liquor by control versus license state. We used a random-effects regression model to estimate differences between control and license state prices-overall and by alcoholic beverage type. We also compared prices between the 13 control states. Findings: The overall mean price for the 74 brands was $27.79 in the license states [95% confidence interval (CI): $25.26-30.32] and $29.82 in the control states (95% CI: $26.98-32.66). Based on the random-effects linear regression model, the average liquor price was approximately $2 lower (6.9% lower) in license states. Conclusions: In the United States monopoly of alcohol retail outlets appears to be associated with slightly higher liquor prices.

Original languageEnglish (US)
Pages (from-to)339-347
Number of pages9
JournalAddiction
Volume108
Issue number2
DOIs
StatePublished - Feb 2013

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Licensure
Alcohols
Linear Models
Confidence Intervals
Alcoholic Beverages
Cross-Sectional Studies

Keywords

  • Alcohol
  • Brand
  • Control states
  • License states
  • Price

ASJC Scopus subject areas

  • Medicine (miscellaneous)
  • Psychiatry and Mental health
  • Medicine(all)

Cite this

Differences in liquor prices between control state-operated and license-state retail outlets in the United States. / Siegel, Michael; Dejong, William; Albers, Alison B.; Naimi, Timothy S.; Jernigan, David H.

In: Addiction, Vol. 108, No. 2, 02.2013, p. 339-347.

Research output: Contribution to journalArticle

Siegel, Michael ; Dejong, William ; Albers, Alison B. ; Naimi, Timothy S. ; Jernigan, David H. / Differences in liquor prices between control state-operated and license-state retail outlets in the United States. In: Addiction. 2013 ; Vol. 108, No. 2. pp. 339-347.
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