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Resale price maintenance: Explaining the controversy, and small steps towards a more nuanced policy

Author

Listed:
  • Bennett, Matthew
  • Fletcher, Amelia
  • Giovannetti, Emanuele
  • Stallibrass, David

Abstract

The paper sets out why we consider that the legal framework in the EU amplifies what are in reality relatively small differences in thinking around RPM. Primarily, this is because it asks economists, in the name of legal certainty, to draw a false dichotomy between agreements and practices which are harmful and those which are beneficial. We then provide a summary of the literature on RPM and, based on this thinking, set out a few small steps that might be taken towards a more nuanced approach to assessing RPM, within a 'presumed illegality' framework without sacrificing the beneficial legal certainty that the current approach brings.

Suggested Citation

  • Bennett, Matthew & Fletcher, Amelia & Giovannetti, Emanuele & Stallibrass, David, 2010. "Resale price maintenance: Explaining the controversy, and small steps towards a more nuanced policy," MPRA Paper 21121, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:21121
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    File URL: https://mpra.ub.uni-muenchen.de/21121/1/MPRA_paper_21121.pdf
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    References listed on IDEAS

    as
    1. Patrick Rey & Thibaud Verge, 2002. "Resale Price Maintenance and Horizontal Cartel," The Centre for Market and Public Organisation 02/047, The Centre for Market and Public Organisation, University of Bristol, UK.
    2. Patrick Rey & Thibaud Vergé, 2004. "Bilateral Control with Vertical Contracts," RAND Journal of Economics, The RAND Corporation, vol. 35(4), pages 728-746, Winter.
    3. Howard P. Marvel & Stephen McCafferty, 1984. "Resale Price Maintenance and Quality Certification," RAND Journal of Economics, The RAND Corporation, vol. 15(3), pages 346-359, Autumn.
    4. Dobson, Paul W. & Waterson, Michael, 2007. "The competition effects of industry-wide vertical price fixing in bilateral oligopoly," International Journal of Industrial Organization, Elsevier, vol. 25(5), pages 935-962, October.
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    Citations

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    Cited by:

    1. Umit Kucuk, S. & Timmermans, Harry J.P., 2012. "Resale Price Maintenance (RPM): The U.S. and E.U. perspectives," Journal of Retailing and Consumer Services, Elsevier, vol. 19(5), pages 537-544.
    2. Emanuele Giovannetti & Laura Magazzini, 2013. "Resale Price Maintenance: An Empirical Analysis of UK Firms' Compliance," Economic Journal, Royal Economic Society, vol. 123(11), pages 582-595, November.
    3. Elif Cemre Hazıroğlu & Semih Gökatalay, 2016. "Minimum resale price maintenance in EU in the aftermath of the US Leegin decision," European Journal of Law and Economics, Springer, vol. 42(1), pages 45-71, August.
    4. Dertwinkel-Kalt, Markus & Wey, Christian, 2021. "Multi-Product Pricing and Minimum Resale Price Maintenance," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242338, Verein für Socialpolitik / German Economic Association.

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    More about this item

    Keywords

    Competition Policy; RPM; Resale Price Maintenance;
    All these keywords.

    JEL classification:

    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law

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