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

José Alfredo Jaramillo ()

Contexto (Artículos Sobre Economía), 2011

Abstract: 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?"

Keywords: Free riding; Minimum Resale Price Maintenance (RPM); precompetitive justifications; rule of reason; per se treatment; Multichannel shopping; Courts vs. Regulation. (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:col:000352:009142

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