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Posted Pricing As A Plus Factor

Author

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  • Joseph E. Harrington Jr.

Abstract

This article identifies conditions under which an industry-wide practice of posted (or list) pricing is a plus factor sufficient to conclude that firms established an agreement to coordinate their prices. For certain classes of markets, it is shown that, under competition, all firms setting a list price with a policy of no discounting is contrary to competition. Thus, if all firms choose posted pricing, it is to facilitate collusion by making it easier for them to coordinate their prices. It is then argued that the adoption of posted pricing communicates the necessary intent and reliance to conclude concerted action.

Suggested Citation

  • Joseph E. Harrington Jr., 2011. "Posted Pricing As A Plus Factor," Journal of Competition Law and Economics, Oxford University Press, vol. 7(1), pages 1-35.
    • Handle: RePEc:oup:jcomle:v:7:y:2011:i:1:p:1-35.
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    File URL: http://hdl.handle.net/10.1093/joclec/nhq030
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    Citations

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    Cited by:

    1. Harrington, Joseph E., 2017. "A theory of collusion with partial mutual understanding," Research in Economics, Elsevier, vol. 71(1), pages 140-158.
    2. Cooper, James C. & Wright, Joshua D., 2012. "Alcohol, antitrust, and the 21st Amendment: An empirical examination of post and hold laws," International Review of Law and Economics, Elsevier, vol. 32(4), pages 379-392.
    3. Joseph E. Harrington, Jr., 2012. "A Theory of Tacit Collusion," Economics Working Paper Archive 588, The Johns Hopkins University,Department of Economics.
    4. Mantell, Edmund H., 2021. "The economics of posted prices in a concentrated market where demand is uncertain," Research in Economics, Elsevier, vol. 75(4), pages 365-375.
    5. Willem H. Boshoff & Johannes Paha, 2021. "List Price Collusion," Journal of Industry, Competition and Trade, Springer, vol. 21(3), pages 393-409, September.
    6. Joseph E. Harrington, Jr., 2012. "Evaluating Mergers for Coordinated Effects and the Role of 'Parallel Accommodating Conduct'," Economics Working Paper Archive 601, The Johns Hopkins University,Department of Economics.
    7. Peter-J. Jost, 2023. "Price commitment and the strategic launch of a fighter brand," Quantitative Marketing and Economics (QME), Springer, vol. 21(3), pages 381-435, September.

    More about this item

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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