American preference for smooth, soft to the taste of beer, may have been largely derived not from an effective, market-clearing equilibrium, but with a number of interesting historical processes and events. Argues that the U.S. market may have become trapped in a suboptimal equilibrium, in which the majority of consumers are not familiar with the full range of what beer can be. As a result, most of the competition in the market centers around the advertising campaigns for the differences between the more common beers. Although the concept of path dependency, switching costs and lock in were employed mainly in studies discussing technological standards, these ideas can be successfully circulated in the consumer branded products, including food and drinks. "Hide
by David W. Choi, Martin H. Stack Source: Business Horizons 8 pages. Publication Date: January 15, 2005. Prod. #: BH146-PDF-ENG
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