Differences in liquor prices between control state-operated and license-state retail outlets in the United States
Article first published online: 17 OCT 2012
© 2012 The Authors, Addiction © 2012 Society for the Study of Addiction
Volume 108, Issue 2, pages 339–347, February 2013
How to Cite
Siegel, M., DeJong, W., Albers, A. B., Naimi, T. S. and Jernigan, D. H. (2013), Differences in liquor prices between control state-operated and license-state retail outlets in the United States. Addiction, 108: 339–347. doi: 10.1111/j.1360-0443.2012.04069.x
- Issue published online: 17 JAN 2013
- Article first published online: 17 OCT 2012
- Accepted manuscript online: 31 AUG 2012 04:49AM EST
- Manuscript Accepted: 23 AUG 2012
- Manuscript Revised: 16 JUL 2012
- Manuscript Received: 14 MAY 2012
- National Institute on Alcohol Abuse and Alcoholism. Grant Number: R01 AA020309-01
- control states;
- license states;
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).
A cross-sectional study of brand-specific alcohol prices in the United States.
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.
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.
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.
In the United States monopoly of alcohol retail outlets appears to be associated with slightly higher liquor prices.