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How to deal with resale price maintenance: What can we learn from empirical results?

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  • Jürgen-Peter Kretschmer

Abstract

The US Supreme Court’s overruling of the pre-existing per se illegality of resale price maintenance and the recommendation of a rule of reason approach in the Leegin decision (Leegin Creative Leather Products, Inc. vs. PSKS, Inc., 2007), raise the question whether other jurisdictions should follow this approach and what future assessments of resale price maintenance cases should look like. Policy decisions have to rely on the importance of various theories concerning welfare effects of resale price maintenance practices, which must be supported by empirical studies. The paper focuses on empirically confirmed theoretical arguments for the analysis and discussion of existing assessment proposals. Furthermore, the paper derives a new recommended assessment procedure for resale price maintenance from a special point of view by combining empirical results with the decision-theoretic approach of optimal sequential investigation rules. Copyright Springer Science+Business Media, LLC 2014

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  • Jürgen-Peter Kretschmer, 2014. "How to deal with resale price maintenance: What can we learn from empirical results?," European Journal of Law and Economics, Springer, vol. 38(2), pages 343-368, October.
    • Handle: RePEc:kap:ejlwec:v:38:y:2014:i:2:p:343-368
    DOI: 10.1007/s10657-012-9325-4
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    1. 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.

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    More about this item

    Keywords

    Antitrust law; Law enforcement; Resale price maintenance; Decision-making; K21; K40; L42; D81;
    All these keywords.

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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