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Free Riding and Resale Price Maintenance, a Love and Hate Relationship

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  • José Alfredo Jaramillo

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    Abstract

    Is free riding bad for competition in the markets? Is it good and necessary to promote competition in the markets? Does free riding (being good or bad) depend on a market structure issue? A new pro-competitive justification arose since Leegin overturned Dr. Miles Court decision giving the business operators a rule of reason in order to determine antitrust harm by a resale price maintenance (RPM) conduct. American courts have dealt with free riding as a pro-competitive justification basing the analysis of this decision on the defendant´s rule of reason. Should American Courts reevaluate their holdings on minimum RPM´s, or should they keep tolerating manufacturer and retailers free riding" on their leniency for anticompetitive effects?"

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    File URL: http://portal.uexternado.edu.co/irj/go/km/docs/documents/UExternado/pdf/5_revistaContexto/Contexto/Archivo/contexto%2034/JoseJaramillo.pdf
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    Bibliographic Info

    Article provided by UNIVERSIDAD EXTERNADO DE COLOMBIA in its journal CONTEXTO (ARTICULOS SOBRE ECONOMÍA).

    Volume (Year): (2011)
    Issue (Month): ()
    Pages:

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    Handle: RePEc:col:000352:009142

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    Related research

    Keywords: Free riding; Minimum Resale Price Maintenance (RPM); precompetitive justifications; rule of reason; per se treatment; Multichannel shopping; Courts vs. Regulation.;

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