A note on collusion and resale price maintenance

• Autores: Bastiaan Overvest
• Localización: European journal of law and economics, ISSN 0929-1261, Vol. 34, Nº 1, 2012, págs. 235-239
• Idioma: inglés
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• Resumen

  • This paper advances a new, anti-collusive, explanation of resale price maintenance. By imposing a price floor, an upstream firm increases the non-cooperative profits of downstream firms and makes collusion relatively less profitable. As a result, collusion may be destabilized and the price floor enables a manufacturer to prevent collusive behavior among downstream firms. This finding contrasts with the popular view that resale price maintenance fosters collusion.