Publications
Publications
- March 2017
- Review of Industrial Organization
Challenges for Empirical Research on RPM
By: Alexander MacKay and David A. Smith
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 (1977; 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; Resale Price Maintenance; Welfare Economics; Price; Competition; Research
Citation
MacKay, Alexander, and David A. Smith. "Challenges for Empirical Research on RPM." Review of Industrial Organization 50, no. 2 (March 2017): 209–220.
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