Differences in liquor prices between control state‐operated and license‐state retail outlets in the United States. (17th October 2012)

• Record Type: Journal Article
• Authors: Siegel, Michael; DeJong, William; Albers, Alison B.; Naimi, Timothy S.; Jernigan, David H.
• Is Part Of: Addiction. Volume 108:Number 2(2013:Feb.)
• Page Start: 339
• Page End: 347
• Publication Date: 2012-10-17
• Subjects: Alcoholism -- Periodicals; Drug addiction -- Periodicals; 616.86
• DOI: 10.1111/j.1360-0443.2012.04069.x
• Languages: English
• ISSNs: 0965-2140

Abstract

<abstract abstract-type="main"> <title>Abstract</title> <sec id="add4069-sec-0001" sec-type="section"> <title>Aims</title> <p>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).</p> </sec> <sec id="add4069-sec-0002" sec-type="section"> <title>Design</title> <p>A cross‐sectional study of brand‐specific alcohol prices in the United States.</p> </sec> <sec id="add4069-sec-0003" sec-type="section"> <title>Setting</title> <p>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.</p> </sec> <sec id="add4069-sec-0004" sec-type="section"> <title>Measurements</title> <p>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.</p> </sec> <sec id="add4069-sec-0005" sec-type="section"> <title>Findings</title> <p>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.</p> </sec> <sec id="add4069-sec-0006" sec-type="section"> <title>Conclusions</title> <p>In the United States monopoly of alcohol retail outlets appears to be associated with slightly higher liquor prices.</p> </sec> </abstract>