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Online RPM and MFN Under Antitrust Law and Economics

Author

Listed:
  • Pinar Akman

    (University of Leeds)

  • D. Daniel Sokol

    (University of Florida Levin College of Law)

Abstract

The legal framing of a firm’s pricing strategy can determine whether it constitutes online resale price maintenance (RPM) or online most favored nation (MFN). Together, cases that involve online RPM and MFN can be viewed as a natural experiment of how antitrust economics and law may adapt to an online world. Thus far, legal theories that have been inconsistent with economic theories have dictated enforcement across jurisdictions, which has led to confusion that thwarts potentially efficient business practices. This paper distinguishes issues of online RPM from traditional RPM and online RPM from online MFN. We apply the economics learning to RPM and analyze the antitrust cases of online RPM and MFN to date in the United States, Europe, and Australia. Finally, we offer policy recommendations that reduce the confusion in current legal doctrine.

Suggested Citation

  • Pinar Akman & D. Daniel Sokol, 2017. "Online RPM and MFN Under Antitrust Law and Economics," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 50(2), pages 133-151, March.
    • Handle: RePEc:kap:revind:v:50:y:2017:i:2:d:10.1007_s11151-016-9560-x
    DOI: 10.1007/s11151-016-9560-x
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    References listed on IDEAS

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    Cited by:

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    3. Wals, Francisca & Schinkel, Maarten Pieter, 2018. "Platform monopolization by narrow-PPC-BPG combination: Booking et al," International Journal of Industrial Organization, Elsevier, vol. 61(C), pages 572-589.
    4. Bisceglia, Michele & Padilla, Jorge & Piccolo, Salvatore, 2021. "When prohibiting wholesale price-parity agreements may harm consumers," International Journal of Industrial Organization, Elsevier, vol. 76(C).

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    More about this item

    Keywords

    Antitrust; Competition law; Economics; Most favored nation; MFN; Resale price maintenance; RPM;
    All these keywords.

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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