The University of Southampton
University of Southampton Institutional Repository

Resale price maintenance and horizontal cartel

Rey, Patrick and Vergé, Thibaud (2002) Resale price maintenance and horizontal cartel CMPO Working Paper, (02/047)

Record type: Article

Abstract

Wheras non-price restrictions such as exclusive territories are often tolerated while Resale Price Maintenance (RPM) is rather unanimously forbidden, the economic analysis shows so far that both types of restraints have positive and negative effects on welfare, in such a way that the balance is not clearly in favour of non-price restrictions. An often expressed idea to justify the courts' decisions against RPM is that it can limit both inter- and intra-brand competition. This paper analyses this argument in a context where manufacturers and retailers have interlocking relationships. It is shown that even as part of purely bilateral vertical contracts, RPM indeed limits the exercise of both inter- an intra-brand competition and can even generate industry-wide monopoly pricing. The final impact on prices depends on the substituability between retailers and between manufacturers, and on the extent of potential competition at the retail level.

Full text not available from this repository.

More information

Published date: 2002

Identifiers

Local EPrints ID: 33363
URI: http://eprints.soton.ac.uk/id/eprint/33363
PURE UUID: 1264e937-766f-49ed-88fc-c5608c955ff0

Catalogue record

Date deposited: 16 May 2006
Last modified: 17 Jul 2017 15:53

Export record

Contributors

Author: Patrick Rey
Author: Thibaud Vergé

University divisions

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×