Resale price maintenance and manufacturer competition for retail services.

We investigate the incentives of two manufacturers with common retailers to use resale price maintenance (RPM). Retailers provide product-specific services that increase demand and manufacturers use minimum RPM to compete for favorable retail services for their products. Minimum RPM increases consum...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 48; no. 1; pp. 3 - 24
Autores principales: Hunold, Matthias, Muthers, Johannes
Formato: Artículo
Publicado: Wiley-Blackwell Spring2017
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Resale price maintenance and manufacturer competition for retail services.
      aug:
        au:
          Hunold, Matthias
          Muthers, Johannes
        affil:
          Düsseldorf Institute for Competition Economics (DICE) at the Heinrich Heine Universität Düsseldorf
          Julius‐Maximilians‐Universität Würzburg
      su:
        Retail industry
        Economic competition
        Prisoner's dilemma game
        Price maintenance
        Manufactured products
        Resale
      sug:
        subj:
          Retail industry
          Economic competition
          Prisoner's dilemma game
          All other miscellaneous manufacturing
          All Other Miscellaneous Manufacturing
          All Other Miscellaneous Store Retailers (except Tobacco Stores)
          All other miscellaneous general merchandise stores
          All other miscellaneous store retailers (except beer and wine-making supplies stores)
          Price maintenance
          Manufactured products
          Resale
      ab: We investigate the incentives of two manufacturers with common retailers to use resale price maintenance (RPM). Retailers provide product-specific services that increase demand and manufacturers use minimum RPM to compete for favorable retail services for their products. Minimum RPM increases consumer prices and can create a prisoner's dilemma for manufacturers without increasing, and possibly even reducing, the overall level of retail services. If manufacturer market power is asymmetric, minimum RPM may distort the allocation of services toward the high-priced products of the manufacturer with more market power. These results challenge the service argument as an efficiency defense for minimum RPM.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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