Exclusionary Minimum Resale Price Maintenance
An upstream manufacturer can use minimum retail price maintenance (RPM) to exclude potential competitors. RPM lets the incumbent manufacturer transfer profits to retailers. If entry is accommodated, upstream competition leads to fierce down- stream competition and the breakdown of RPM. Hence, via RPM, retailers internalize the effect of accommodating entry on the incumbent's profits. Retailers may prefer not to accommodate entry; and, if entry requires downstream accommodation, entry can be deterred. We investigate when an incumbent would prefer to exclude, rather than collude with, the entrant and the effect of a retailer cartel. We also consider the effect of imperfect competition. Empirical and policy implications are discussed.
(This abstract was borrowed from another version of this item.)
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (212) 998-0860
Fax: (212) 995-4218
Web page: http://w4.stern.nyu.edu/economics/
More information through EDIRC
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.:
- Deneckere, Raymond & Marvel, Howard P & Peck, James, 1996.
"Demand Uncertainty, Inventories, and Resale Price Maintenance,"
The Quarterly Journal of Economics,
MIT Press, vol. 111(3), pages 885-913, August.
- Howard P. Marvel & Raymond Deneckere & James Peck, 1995. "Demand Uncertainty, Inventories, and Resale Price Maintainance," Working Papers 019, Ohio State University, Department of Economics.
- Frank Mathewson & Ralph Winter, 1998. "The Law and Economics of Resale Price Maintenance," Review of Industrial Organization, Springer, vol. 13(1), pages 57-84, April.
- Argenton, C., 2008.
2008-20, Tilburg University, Center for Economic Research.
- Argenton, Cédric, 2006. "Exclusive Quality," SSE/EFI Working Paper Series in Economics and Finance 640, Stockholm School of Economics, revised 17 Nov 2006.
- Argenton, C., 2008. "Exclusive Quality," Discussion Paper 2008-007, Tilburg University, Tilburg Law and Economic Center.
- Jeanine Thal, 2005.
"Optimal Collusion under Cost Asymmetry,"
2005-36, Centre de Recherche en Economie et Statistique.
- Ornstein, Stanley I & Hanssens, Dominique M, 1987. "Resale Price Maintenance: Output Increasing or Restricting? The Case of Distilled Spirits in the United States," Journal of Industrial Economics, Wiley Blackwell, vol. 36(1), pages 1-18, September.
- Chiara Fumagalli & Massimo Motta, 2006.
"Exclusive Dealing and Entry, when Buyers Compete,"
American Economic Review,
American Economic Association, vol. 96(3), pages 785-795, June.
- Ariel Rubinstein, 1997.
"Finite automata play the repeated prisioners dilemma,"
Levine's Working Paper Archive
1639, David K. Levine.
- Rubinstein, Ariel, 1986. "Finite automata play the repeated prisoner's dilemma," Journal of Economic Theory, Elsevier, vol. 39(1), pages 83-96, June.
- Mailath, George J. & Samuelson, Larry, 2006. "Repeated Games and Reputations: Long-Run Relationships," OUP Catalogue, Oxford University Press, number 9780195300796, March.
- repec:att:wimass:9507 is not listed on IDEAS
- Patrick Rey & Thibaud Verge, 2002.
"Bilateral Control with Vertical Contracts,"
The Centre for Market and Public Organisation
02/048, Department of Economics, University of Bristol, UK.
- Ippolito, Pauline M, 1991. "Resale Price Maintenance: Empirical Evidence from Litigation," Journal of Law and Economics, University of Chicago Press, vol. 34(2), pages 263-94, October.
- Patrick Rey & Thibaud Vergé, 2010.
"Resale Price Maintenance And Interlocking Relationships,"
Journal of Industrial Economics,
Wiley Blackwell, vol. 58(4), pages 928-961, December.
- Patrick REY & Thibaud VERGE, 2009. "Resale Price Maintenance and Interlocking Relationships," Working Papers 2009-11, Centre de Recherche en Economie et Statistique.
- Ralph A. Winter, 2009. "Presidential Address: Antitrust restrictions on single-firm strategies," Canadian Journal of Economics, Canadian Economics Association, vol. 42(4), pages 1207-1239, November.
- Howard P. Marvel & Raymond Deneckere & James Peck, 1995.
"Demand Uncertainty and Price Maintainance: Markdowns as Destructive Competition,"
018, Ohio State University, Department of Economics.
- Deneckere, Raymond & Marvel, Howard P & Peck, James, 1997. "Demand Uncertainty and Price Maintenance: Markdowns as Destructive Competition," American Economic Review, American Economic Association, vol. 87(4), pages 619-41, September.
- de Roos, Nicolas, 2006. "Examining models of collusion: The market for lysine," International Journal of Industrial Organization, Elsevier, vol. 24(6), pages 1083-1107, November.
- Jullien, Bruno & Rey, Patrick, 2000.
"Resale Price Maintenance and Collusion,"
CEPR Discussion Papers
2553, C.E.P.R. Discussion Papers.
- Allan Collard‐Wexler, 2013. "Demand Fluctuations in the Ready‐Mix Concrete Industry," Econometrica, Econometric Society, vol. 81(3), pages 1003-1037, 05.
- Rasmusen, Eric B & Ramseyer, J Mark & Wiley, John S, Jr, 1991. "Naked Exclusion," American Economic Review, American Economic Association, vol. 81(5), pages 1137-45, December.
- Ackerberg, Daniel & Lanier Benkard, C. & Berry, Steven & Pakes, Ariel, 2007. "Econometric Tools for Analyzing Market Outcomes," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 63 Elsevier.
- Harrington, Joseph E, Jr, 1991. "The Determination of Price and Output Quotas in a Heterogeneous Cartel," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(4), pages 767-92, November.
- Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, June.
- William Comanor & Patrick Rey, 2000. "Vertical Restraints and the Market Power of Large Distributors," Review of Industrial Organization, Springer, vol. 17(2), pages 135-153, September.
- Greg Shaffer, 1991. "Slotting Allowances and Resale Price Maintenance: A Comparison of Facilitating Practices," RAND Journal of Economics, The RAND Corporation, vol. 22(1), pages 120-135, Spring.
- Abito, Jose Miguel & Wright, Julian, 2008. "Exclusive dealing with imperfect downstream competition," International Journal of Industrial Organization, Elsevier, vol. 26(1), pages 227-246, January.
- Klein, Benjamin & Murphy, Kevin M, 1988. "Vertical Restraints as Contract Enforcement Mechanisms," Journal of Law and Economics, University of Chicago Press, vol. 31(2), pages 265-97, October.
- Chang, Myong-Hun, 1991. "The effects of product differentiation on collusive pricing," International Journal of Industrial Organization, Elsevier, vol. 9(3), pages 453-469, September.
- Aghion, Philippe & Bolton, Patrick, 1987. "Contracts as a Barrier to Entry," American Economic Review, American Economic Association, vol. 77(3), pages 388-401, June.
When requesting a correction, please mention this item's handle: RePEc:ste:nystbu:11-22. 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: (Viveca Licata)
If references are entirely missing, you can add them using this form.