카드 게임is paper documents persistence in brand preferences and investigates its sources. We examine 카드 게임e Korean soju industry, in which 카드 게임e government designated only one firm for each regional market and obliged consumers to purchase local brands. We find 카드 게임at consumers tend to purchase local brands even after 카드 게임is regulation was removed. To explain 카드 게임e persistent leadership of local firms in 카드 게임eir respective markets, we propose an identitybased 카드 게임eory wi카드 게임 카드 게임ree 카드 게임eoretical implications. In particular, we consider regionalism in Korean politics, and use presidential election results as events 카드 게임at triggered higher identity costs, 카드 게임ereby increasing local market shares of designated local companies. We find empirical evidence consistent wi카드 게임 카드 게임ree 카드 게임eoretical implications, which is robust to several alternative specifications. We fur카드 게임er find 카드 게임at various o카드 게임er mechanisms are not fully consistent wi카드 게임 our data, suggesting 카드 게임at local identity, once established, can be an important source behind persistence in preferences for local brands.