The Competitive Effects of Resale Price Maintenance
Resale price maintenance (RPM) occurs when an upstream firm dictates pricing policies at subsequent stages of the distribution process. The allocative and productive effects of RPM are theoretically ambiguous, and existing empirical studies have not resolved the theoretical disputes. Utilizing the share price response of firms subject to antitrust challenges to RPM, the empirical analysis in this article indicates that this practice is used for a variety of reasons and produces a range of allocative and productive effects. The analysis also indicates that the structural characteristics of firms and industries that use RPM are important determinants of its effects. These results have implications for the theory of vertical control and for interpreting recommendations about the conduct of contemporary antitrust policy toward RPM.
Volume (Year): 17 (1986)
Issue (Month): 4 (Winter)
|Contact details of provider:|| Web page: http://www.rje.org|
|Order Information:||Web: https://editorialexpress.com/cgi-bin/rje_online.cgi|
When requesting a correction, please mention this item's handle: RePEc:rje:randje:v:17:y:1986:i:winter:p:544-556. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.