Loading...
Please wait, while we are loading the content...
Similar Documents
Vertical Information Restraints : Pro-and Anti-Competitive Impacts of Minimum Advertised Price Restrictions
| Content Provider | Semantic Scholar |
|---|---|
| Author | Asker, John Bar-Isaac, Heski |
| Copyright Year | 2017 |
| Abstract | We consider vertical contracts where the retail market may involve search frictions. Minimum advertised price restrictions (MAP) act as a restraint on customers’ information and so can increase search frictions in the retail sector. Such restraints, thereby, soften retail competition—an impact also generated by resale price maintenance (RPM). However, by accommodating (consumer or retailer) heterogeneity, MAP can allow for higher manufacturer profits than RPM. We show that they can do so through facilitating price discrimination among consumers; encouraging service provision; and facilitating manufacturer collusion. Thus, welfare effects may be positive or negative compared to RPM or to the absence of such restrictions. ∗We gratefully acknowledge useful comments from Arthur Campbell, Allan Collard Wexler, Daniel Garcia, Gautam Gowrisankaran, Marco Haan, Bruno Jullien, Robin Lee, Matt Mitchell, Joao Montez, Volker Nocke, Martin Peitz, Patrick Rey, John Riley, Sandro Shelegia, Rona BarIsaac and Jidong Zhou and from seminar participants at the U Toronto bag lunch, MACCI 2016, CIRANO Conference on IO 2016, EARIE 2016, CEMFI, TSE, 8th Workshop on Consumer Search and switching Costs, and Barcelona Summer Forum 2017. We thank Rami Abou-Seido and El Hadi Caoui for excellent research assistance and SSHRC (435-2014-0004) for financial support. Email: johnasker@econ.ucla.edu and heski.bar-isaac@rotman.utoronto.ca |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://som.yale.edu/sites/default/files/files/Bar-Isaac.pdf |
| Alternate Webpage(s) | http://www.johnasker.com/MAP.pdf |
| Alternate Webpage(s) | http://www.law.northwestern.edu/research-faculty/searlecenter/events/antitrust/documents/AskerBarIsaacMAP.pdf |
| Language | English |
| Access Restriction | Open |
| Subject Keyword | Allan M. Collins Allan-Herndon-Dudley syndrome (AHDS) Contract agreement Email João Pavão Martins PC Bruno Physical restraint equipment (device) Pierre Robin Syndrome Price point Ravens colored progressive matrices Renpenning syndrome 1 Revolutions per minute Sandro Corsaro |
| Content Type | Text |
| Resource Type | Article |
