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

Listed author(s):
  • José Alfredo Jaramillo


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

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    Handle: RePEc:col:000352:009142
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