Online RPM and MFN Under Antitrust Law and Economics

The legal framing of a firm’s pricing strategy can determine whether it constitutes online resale price maintenance (RPM) or online most favored nation (MFN). Together, cases that involve online RPM and MFN can be viewed as a natural experiment of how antitrust economics and law may adapt to an online world. Thus far, legal theories that have been inconsistent with economic theories have dictated enforcement across jurisdictions, which has led to confusion that thwarts potentially efficient business practices. This paper distinguishes issues of online RPM from traditional RPM and online RPM from online MFN. We apply the economics learning to RPM and analyze the antitrust cases of online RPM and MFN to date in the United States, Europe, and Australia. Finally, we offer policy recommendations that reduce the confusion in current legal doctrine.     

Change dynamics in institutional discontinuities: Do formal or informal institutions change first? Lessons from rule changes in professional American baseball

Abstract

Extant research presents a conflicting picture of change dynamics during institutional discontinuities. Some studies propose or depict formal rules as changing first. Others argue that norms need to change before formal rules can be revisited, let alone change. An examination of the literature suggests a contingency theory. In mature organisational fields with institutionalised informal rules, norms need to be questioned and changed before any change in formal rules can take place. On the other hand, in emergent organisational fields – where no particular rules of the game have been institutionalised ? change in higher-level institutions begins with a change in formal rules. The article also presents two historical cases of major institutional change in professional American baseball that illustrate the theory proposed.