Minimum Resale Price Maintenance: Some Empirical Evidence from Maryland
On October 1, 2009, the State of Maryland enacted a statute that prohibits the use of minimum resale price maintenance (RPM). This was in response to the Supreme Court's 2007 Leegin decision that held that RPM should be evaluated under the rule of reason rather than be considered per se illegal. The Maryland statute provides a natural experiment that can be used to analyze the effect of RPM on retail prices. We analyze the effect of the statute on video game prices in Maryland. Video games were used for this analysis because video game manufacturers have been known to impose RPM. Employing a difference-in-differences approach, we find no effect of the Maryland statute on video game prices.
Volume (Year): 10 (2010)
Issue (Month): 1 (March)
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, July.
- Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004.
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- Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2002. "How Much Should We Trust Differences-in-Differences Estimates?," NBER Working Papers 8841, National Bureau of Economic Research, Inc.
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