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The Risks of Resale Price Maintenance Prohibition for the Effectiveness of Inter-Brand Competition

Dieter Ahlert () and Benjamin Schefer ()
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Dieter Ahlert: University of Münster
Benjamin Schefer: University of Münster

Chapter Chapter 3 in Vertical Price Coordination and Brand Care, 2013, pp 19-32 from Springer

Abstract: Abstract The conclusion to be drawn from the above statements is that the preservation of supply diversity by protecting strong brands and the expansion of diversity by protecting investments in innovation—given the lack of State protection mechanisms—necessarily requires freedom to take action oneself to regulate internal relationships in value system. However, the strict prohibition of every form of vertical price and brand care largely cancels out this freedom. Undisputedly regarded as evident today is the fact that no general increase in welfare is achieved as a result. On the contrary, the effectiveness of competition between the major brands is seriously endangered. This evidence is examined once again systematically in this section.

Keywords: Consumer Welfare; Competition Authority; Resale Price Maintenance; Strong Brand; Vertical Restraint (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:spr:spbrcp:978-3-642-35570-7_3

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DOI: 10.1007/978-3-642-35570-7_3

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