Resale price maintenance: A managerial perspective |
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| Authors: | Roger D. Blair Joseph Whitman |
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| Affiliation: | 1. Department of Economics, University of Florida, and Affiliate Faculty, Levin College of Law, University of Florida, Gainesville, FL, USA;2. Department of Economics, University of Florida, Gainesville, FL, USA |
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| Abstract: | Managers can improve firm profits by selecting the appropriate pricing strategy. In this article, we show how managers can use one particular controversial pricing strategy—resale price maintenance (RPM)—to enhance firm profits. We first discuss the antitrust treatment of RPM, both in the United States and internationally. Then we examine the economic effects of implementing RPM in several key contexts: product promotion, quality certification, prestige goods, and online retail. We also discuss the effects of RPM on entry of new firms. |
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