Challenges for Empirical Research on RPM

Alexander MacKay and David Smith ()

Review of Industrial Organization, 2017, vol. 50, issue 2, No 6, 209-220

Abstract: Abstract This article discusses the empirical challenges that researchers face when demonstrating the existence and effects of resale price maintenance (RPM). We outline three approaches for finding price effects of RPM and the corresponding hurdles in data and methodology. We show that the quantity test that was suggested by Posner (Univ Chic Law Rev 45(1):1–20, 1977; Univ Chic Law Rev 48:6–26, 1981) does not identify the change to welfare when demand-enhancing effects are considered generally. Finally, we present some solutions to the challenge of identifying welfare effects, and we suggest guidelines for future research.

Keywords: Antitrust issues and policies; Antitrust law; Firm behavior: empirical analysis; Resale price maintenance; Welfare economics (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (5)

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DOI: 10.1007/s11151-016-9562-8

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