tag:blogger.com,1999:blog-3471471289744825428.post2025810106178867459..comments2024-03-11T00:31:41.186-07:00Comments on The Oregon Economics Blog: Beeronomics: Hops Shortages and the Price SystemPatrick Emersonhttp://www.blogger.com/profile/17242234148546323374noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-3471471289744825428.post-73774382586214898592007-10-26T13:08:00.000-07:002007-10-26T13:08:00.000-07:00I suppose you could make the argument that brewpub...I suppose you could make the argument that brewpubs are actually more resistant than larger breweries. Brewpubs can raise prices more easily and without the same kind of blowback as bottle-beer breweries, which must compete head-to-head on the grocery shelves. Brewpubs sell only their own beer, and the difference between four bucks and four fifty for a pint is not likely to influence sales.<BR/><BR/>Hmm...Jeff Alworthhttps://www.blogger.com/profile/02930119177544342495noreply@blogger.comtag:blogger.com,1999:blog-3471471289744825428.post-88188875892027393242007-10-26T12:40:00.000-07:002007-10-26T12:40:00.000-07:00Well, true, but high prices also may spur brewerie...Well, true, but high prices also may spur breweries to experiment, may cause them to invest in some hop acreage themselves, etc. I cannot think of another mechanism though which these things would occur. <BR/><BR/>I think your contention about small breweries is not necessarily true, BTW. I think that most drinkers of craft beers, one, do not consider macro brews good subsitiutes and, two, are not terribly price sensitive. (For economics geeks: I think price elasticity is low) So if high hop prices affect all brewers in a similar fashion, I am not that worried about them.Patrick Emersonhttps://www.blogger.com/profile/17242234148546323374noreply@blogger.comtag:blogger.com,1999:blog-3471471289744825428.post-91901776348004774782007-10-26T12:35:00.000-07:002007-10-26T12:35:00.000-07:00If the airplane you're flying in is high enough ab...If the airplane you're flying in is high enough above the market, I have no doubt it looks like this organic process you describe. Like an ecosystem in balance.<BR/><BR/>But fly a little lower, and you see that for a healthy ecosystem to flourish, there are a thousand tiny deaths. I worry in this circumstance that the breweries that will survive a protracted hop shortage will be those that have larger capacity and can cut profit margins. While it may be theoretically true that the bigger breweries make the best beer--and are thus the "fittest"--we know this to be untrue. <BR/><BR/>In five years, there will be no hop shortage; equilibrium will be restored. I hope my favorite small breweries are still around to enjoy the bounty.Jeff Alworthhttps://www.blogger.com/profile/02930119177544342495noreply@blogger.com