| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5052861 | Economic Analysis and Policy | 2010 | 6 Pages |
Abstract
The ability of a manufacturer to enhance competition among its retailers by imposing a price floor was recently introduced in the literature. The purpose of this article is to revisit this anti-collusive explanation of the retail price maintenance in a more general model in which we introduce asymmetric retailers. We find that a manufacturer can amplify the retail market's competition by imposing a price floor when retailers sell differentiated products. This result contradicts the prevailing concept of retail price maintenance.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Barna Bakó,