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  • March 2017
  • Article
  • Review of Industrial Organization

Challenges for Empirical Research on RPM

By: Alexander MacKay and David A. Smith
  • Format:Print
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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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More from the Authors
  • Estimating Models of Supply and Demand: Instruments and Covariance Restrictions By: Alexander MacKay and Nathan H. Miller
  • LIV Golf By: Alexander J. MacKay
  • Self-Preferencing at Amazon: Evidence from Search Rankings By: Chiara Farronato, Andrey Fradkin and Alexander MacKay
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