IDEAS home Printed from https://ideas.repec.org/a/kap/revind/v50y2017i2d10.1007_s11151-017-9570-3.html
   My bibliography  Save this article

Leegin and the Economics of Resale Price Maintenance

Author

Listed:
  • Howard P. Marvel

    (The Ohio State University)

Abstract

When the U.S. Supreme Court overturned its century-old precedent that treated resale price maintenance (RPM) as a per se violation of the antitrust laws, it signaled approval for the vertical restraint’s widespread use. But the increased use of RPM occurred under a pre-existing rule that permitted RPM as long as no formal agreement over price was reached. This paper documents not only the increased use of RPM post Leegin but also the importance of avoiding the appearance of agreements to control resale prices. The paper then discusses how plaintiffs, previously enamored of claims of RPM, are now recasting vertical RPM arrangements as ancillary to horizontal agreements among distributors that are made effective though enforcement by producers.

Suggested Citation

  • Howard P. Marvel, 2017. "Leegin and the Economics of Resale Price Maintenance," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 50(2), pages 221-244, March.
    • Handle: RePEc:kap:revind:v:50:y:2017:i:2:d:10.1007_s11151-017-9570-3
    DOI: 10.1007/s11151-017-9570-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11151-017-9570-3
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11151-017-9570-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. George L. Priest & Benjamin Klein, 1984. "The Selection of Disputes for Litigation," The Journal of Legal Studies, University of Chicago Press, vol. 13(1), pages 1-56, January.
    2. Sundararajan, Arun, 2016. "The Sharing Economy: The End of Employment and the Rise of Crowd-Based Capitalism," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262034573, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrey SHEVCHUK & Denis STREBKOV, 2023. "Digital platforms and the changing freelance workforce in the Russian Federation: A ten‐year perspective," International Labour Review, International Labour Organization, vol. 162(1), pages 1-22, March.
    2. Pyle, William, 2006. "Resolutions, recoveries and relationships: The evolution of payment disputes in Central and Eastern Europe," Journal of Comparative Economics, Elsevier, vol. 34(2), pages 317-337, June.
    3. Giuseppe Dari-Mattiacci & Bruno Deffains, 2007. "Uncertainty of Law and the Legal Process," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 163(4), pages 627-656, December.
    4. Galasso, Alberto & Schankerman, Mark, 2013. "Patents and Cumulative Innovation:Causal Evidence from the Courts," IIR Working Paper 13-16, Institute of Innovation Research, Hitotsubashi University.
    5. Benito Arruñada, 2023. "La protección administrativa de las relaciones financieras," Fedea Economy Notes 2023-11, FEDEA.
    6. Schankerman, Mark & Lanjouw, Jean, 2001. "Enforcing Intellectual Property Rights," CEPR Discussion Papers 3093, C.E.P.R. Discussion Papers.
    7. Chopard, Bertrand & Cortade, Thomas & Langlais, Eric, 2010. "Trial and settlement negotiations between asymmetrically skilled parties," International Review of Law and Economics, Elsevier, vol. 30(1), pages 18-27, March.
    8. Dietmar Harhoff & Georg von Graevenitz & Stefan Wagner, 2016. "Conflict Resolution, Public Goods, and Patent Thickets," Management Science, INFORMS, vol. 62(3), pages 704-721, March.
    9. Petra Ritzer-Angerer, 2021. "Sharing Economy trifft ÖPNV — das neue Personenbeförderungsgesetz [Sharing Economy Meets Public Transport — The New Passenger Transport Act]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 101(10), pages 789-794, October.
    10. Fotis, Panagiotis & Tselekounis, Markos, 2020. "Optimal Reduction of Cartel Fines induced by the Settlement Procedure," MPRA Paper 99154, University Library of Munich, Germany.
    11. Pia Szichta & Ingela Tietze, 2020. "Sharing Economy in der Elektrizitätswirtschaft: Treiber und Hemmnisse [Title sharing economy in the electricity sector: drivers and barriers]," NachhaltigkeitsManagementForum | Sustainability Management Forum, Springer, vol. 28(3), pages 109-125, December.
    12. Schumacher, Julian & Trebesch, Christoph & Enderlein, Henrik, 2021. "Sovereign defaults in court," Journal of International Economics, Elsevier, vol. 131(C).
    13. Lutz, Christoph & Newlands, Gemma, 2018. "Consumer segmentation within the sharing economy: The case of Airbnb," Journal of Business Research, Elsevier, vol. 88(C), pages 187-196.
    14. Maik Hesse & Timm Teubner & Marc T. P. Adam, 2022. "In Stars We Trust – A Note on Reputation Portability Between Digital Platforms," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 64(3), pages 349-358, June.
    15. Lewis, Tracy R & Poitevin, Michel, 1997. "Disclosure of Information in Regulatory Proceedings," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 13(1), pages 50-73, April.
    16. Malcolm Coate & Shawn Ulrick, 2009. "Do Court Decisions Drive the Federal Trade Commission’s Enforcement Policy on Merger Settlements?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 34(2), pages 99-114, March.
    17. Agnieszka Izabela Baruk, 2021. "Relationships between Final Purchasers and Offerors in the Context of Their Perception by Final Purchasers," Energies, MDPI, vol. 14(11), pages 1-15, June.
    18. Eric, Van den Steen, 2002. "Skill or Luck? Biases of Rational Agents," Working papers 4255-02, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    19. Linda R. Cohen & Jun Ishii, 2005. "Competition, Innovation and Racing for Priority at the U.S. Patent and Trademark Office," Working Papers 050604, University of California-Irvine, Department of Economics.
    20. L. A. Franzoni, 2016. "Optimal liability design under risk and ambiguity," Working Papers wp1048, Dipartimento Scienze Economiche, Universita' di Bologna.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:revind:v:50:y:2017:i:2:d:10.1007_s11151-017-9570-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.