Systembolaget's Monopoly Analysis
Assumptions of the Monopoly Model Systembolaget operates as a government owned monopoly. The assumptions of this market structure are the following: • Single seller in the market Systembolaget has been Sweden’s only seller of alcohol since 1955, when it was founded and made a government owned alcohol monopoly to control and limit the consumption of alcohol. (“Historien Om Systembolaget”) • They have 40% or more of the market share According to data from 2014, Systembolaget has 79% of the market share of recorded alcohol consumption, however, it has 61% of the market share of total alcohol consumption (Hallberg, Joh, and Esa Österberg) Figure 3 (created using Excel) showing the market share of Systembolaget. • There are no close …show more content…
The myth that Systembolaget is only trying to make a profit can be debunked by the fact that alcohol and its effects create losses for the government. The government does receive large sums through VAT and alcohol tax but the cost to society due to abuse of alcohol is a lot higher. According to 2011’s Missbruksutredningen (Translated: abuse inquiry), alcohol creates a cost to society of 49 to 66 billion Swedish kronor ($6-8 billion). The government isn’t trying to exploit consumers but protect them and society from the effects of alcohol abuse. Price Elasticity of Demand for Alcohol Price elasticity of demand measures the responsiveness of quantity demanded of a good to a change in price. It gives the indication whether a good is elastic (large change in Qd) or inelastic (small change in Qd). Alcohol is a habit forming good, meaning that consumption patterns will almost remain constant with a change in price. As shown in figure 6, increasing the price due to a tax from Pe to Pc will only result in a small decrease in quantity demanded (Q to Q1) due the inelastic nature of alcohol. Because of this, an increase in taxation of alcoholic beverages will not reduce consumption patterns of this good by a large amount and thus the imposition of tax on alcoholic beverages will benefit the government by increasing government
Larissa Ducatti Flister Analysis
574 Words | 3 PagesThe argument and proposals by Larissa Ducatti Flister on how to bolster the Canadian economy through legalization and taxation of marijuana is provides enough fiscal evidence, supported by articles on the effects on Canadian society the criminalization of marijuana has had over the past years. While she contends the economic windfall of taxing marijuana is a benefit to the Canadian economy she also shows that government oversight will ensure greater safety to the users and thereby further cut costs to the government by reduced medical and emergency charges. The information clearly supports her claims about the societal benefits and indicates that crime would be reduced from prosecuting people for use and possession of marijuana. This would
Selling Alcohol In NCAA Football
404 Words | 2 PagesStudents, alumni, families, and fans experience a rush of excitement when NCAA football season starts. The start of the season symbolizes the end of summer and the start of the fall semester. Many gather at tailgating parties to cheer on their favorite team as they compete during an epic gridiron battle. Traditionally beer and other alcoholic beverages have accompanied tailgating events. But since most stadiums have banned alcohol in the past many have chosen to consume large amounts of alcohol before entering the stadium.
Stratified Monopoly Game Analysis
813 Words | 4 PagesDuring our Stratified Monopoly game in class on Wednesday, I was put into the upper class since I rolled a 9. Being in the upper class helped a lot during the game. It was hard for my group since either we’ve never played or hadn’t played since we were kids, but we caught on quickly once things were explained. The upper class controlled the bank, which was very helpful for us since every deal made with the bank was a deal made with us. As the upper class, we also started out with the most money and we could buy any property we wanted, instead of being restricted like the other 3 classes.
Minimum Legal Drinking Age Analysis
1628 Words | 7 PagesThe article from Journal of Health Economics introduces the impact of minimum legal drinking age laws on alcohol consumption, smoking, and marijuana use. The abuse of alcohol is coming with healthy issue and some considerable spillover effects such as risky behavior, criminal activity, and alcohol related traffic injuries and fatalities. The regulation on alcohol availability in the lower the minimum legal drinking age from 21. The opponents of the MLDA of 21 argue that the age limit encourages young adults under age 21 to consume alcohol in an irresponsible manner and that lowering age would help young adults to learn how to drink gradually, safely. Many studies have investigated the effect of the MLDA law on alcohol consumption.
Minimum Legal Drinking Age
1882 Words | 8 PagesAlcohol seems to be an important part of daily life for many people. It's a substance associated with having fun amongst friends and family. Fortunately, certain laws help to protect us against the dangers that alcohol potentially brings upon our society. Although a section of the population argues for lowering the drinking age to 18, there have been many benefits with keeping it at 21. The main purpose of setting the Minimum Legal Drinking Age at 21 is to provide safety for the public, which should be the primary responsibility of the government.
Roosevelt Monopolies Analysis
579 Words | 3 PagesRoosevelt was re-elected president of the United States (first time elected) in 1904 partly to break up trusts and monopolies. The public was outraged for decades by the ways trusts and monopolies were cheating in business. Roosevelt felt that the US government was responsible for the falls of many legitimate businesses, because they failed to prosecute trusts and monopolies (Roosevelt 222). As president, Roosevelt pledged to protect small businesses and sue monopolies and trusts by implementing the Sherman Antitrust Act to restore honest commerce and labor conditions. Railroad discrimination continued to exist when Roosevelt came into the presidency after President Mckinley’s assassination.
History Of Diageo Plc
1421 Words | 6 PagesDiageo Plc is one of the largest producers of alcohol beverages in the world with its headquarters in London, United Kingdom. The company’s history traces back in the 17th century. Diageo was formed through the merger of Grand Metropolitan PLC and Guiness PLC in 1997. The company is ranked third amongst other world’s largest alcohol producers including Heineken, Carlsberg and Anheuser Busch Inbev NV according to market capitalisation (Financial Times, 2017).
Analysis: The Walt Disney Monopoly
1436 Words | 6 PagesIn the past decade, The Walt Disney Corporation has dominated the entertainment industry and has purchased popular and recognizable properties in the entertainment business (“Mouse-Opoly”). Disney has a great understanding of what the audience wants before they even dream of it themselves. However, with Disney’s recent purchases consumers have become concerned that Disney is monopolizing the entertainment industry. Before continuing it is important understand the definition of monopoly that I am using to make my claim. According to Merriam-Webster, a monopoly is corporation that has “complete control of the entire supply of goods or services in a certain area of market” (“Mouse-Opoly”).
Negative Externality Of Alcohol
802 Words | 4 PagesA difficulty, however, is monitoring how much it actually is.. If it is unclear how much negative externality is imposed on society it is difficult to say how high the taxes should be. Another problem, which could occur is that the black market could benefit from the high taxes on alcohol. Since such goods are not controlled by the government. The inferior alcohol, which is sold on the black market, can cause severe health issues.
Coca Cola Demand Curve
1041 Words | 5 PagesDEMAND CURVE Demand is defined as the different quantities people are willing to buy at different prices. As the price of good increases the demand decreases and vice versa. The law of demand states shows an inverse relationship between price and quantity demanded. The demand curve shows the relationship between the quantity of a good a consumer is willing to buy and the price of the good. The equation for that shows the relationship between the quantity demanded and price is as given below: QD =
Informative Essay On Alcoholism
1322 Words | 6 PagesALCOHOLISM How many times have you heard about the consequences of alcoholism? Have you taken them into account? Alcoholism is one of the major problems in society. People don’t take it so seriously but it actually is a disease. The effects of this disease are really serious.
Persuasive Essay On Alcohol
853 Words | 4 PagesIn today’s modern age alcohol has become a way of life, it is evident that majority of the countries throughout the world accept alcohol as an antidepressant that can be fun and can take the edge off activities, many people die from it each year. Consequently, these deaths are only one of the many reasons why alcohol should be banned. As a result, Alcohol can cause cardiovascular diseases, cancer, chronic lung disease and diabetes in moderate drinkers. Not only does drinking have a negative effect on your body if too much is consumed on occasions it can also lead to deadly accidents from being impaired while driving. Striker laws should be enforced on the consumption of alcohol.
Argumentative Essay On Junk Food
968 Words | 4 PagesFor a will, the sugar-sweetened drink has been taxed and are improving people diet and there is a lot of research on junk food is taxed and how it can also improve people diet. In places were sugar drinks have been taxed the person paying for there drink is taxed but for junk, food researcher has shown that taxing the people will have no impact. If people are not taxed than manufacturers should be taxed, and studies have shown when manufacturers are taxed than they are more likely to increase prices which will stop people from buying junk food and look for healthier food. Junk food has caused an increased rate of obesity and one way the government is trying to fight this is by having fat taxes which tax just unhealthy food and sugar-sweetened drinks. When junk food is being taxed than people will more incline to buy healthy food and drinks, this is only possible when the manufacturers are taxed.
Oligopoly Case Study
1870 Words | 8 Pages1.0 INTRODUCTION In an economy, there exists different market structures to accommodate different industries and firms. This study will be made to understand in further depth the market power of different market structures, and in particular an example of using case studies of agricultural sector of the French markets to explain how an ideal perfectly competitive market works. This will then be further strengthened with several references linked to the case study. 1.1 Monopoly market
Distell Swot Analysis
2958 Words | 12 PagesThe company markets some of South Africa’s iconic liquor brands,98 brands under
More about Systembolaget's Monopoly Analysis
Larissa Ducatti Flister Analysis
574 Words | 3 PagesSelling Alcohol In NCAA Football
404 Words | 2 PagesStratified Monopoly Game Analysis
813 Words | 4 PagesMinimum Legal Drinking Age Analysis
1628 Words | 7 PagesMinimum Legal Drinking Age
1882 Words | 8 PagesRoosevelt Monopolies Analysis
579 Words | 3 PagesHistory Of Diageo Plc
1421 Words | 6 PagesAnalysis: The Walt Disney Monopoly
1436 Words | 6 PagesNegative Externality Of Alcohol
802 Words | 4 PagesCoca Cola Demand Curve
1041 Words | 5 PagesInformative Essay On Alcoholism
1322 Words | 6 PagesPersuasive Essay On Alcohol
853 Words | 4 PagesArgumentative Essay On Junk Food
968 Words | 4 PagesOligopoly Case Study
1870 Words | 8 PagesDistell Swot Analysis
2958 Words | 12 Pages