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Brand-specificity of pre-sale services and inter-brand competition with resale price maintenance

Title
Brand-specificity of pre-sale services and inter-brand competition with resale price maintenance
Authors
Bang, Se HoonJin, Yangsoo
Ewha Authors
방세훈
SCOPUS Author ID
방세훈scopusscopus
Issue Date
2015
Journal Title
INTERNATIONAL REVIEW OF LAW AND ECONOMICS
ISSN
0144-8188JCR Link1873-6394JCR Link
Citation
vol. 43, pp. 1 - 9
Keywords
Resale price maintenanceBrand-specific servicesAntitrust policy
Publisher
ELSEVIER SCIENCE INC
Indexed
SSCI; SCOPUS WOS
Abstract
We analyze the competitive effects of resale price maintenance (RPM) in circumstances in which multiple manufacturers use RPM and distributors have incentives to free-ride on other distributors' pre-sale services, which can be specific to a manufacturer's brand to some extent. In the antitrust literature and practices, RPM solving the free-rider problem is perceived mostly as pro-competitive, while multiple manufacturers' RPM is perceived as anti-competitive based on their collusive incentives. In our circumstances, distributors' services may differentiate manufacturers' brands ex post, as is desired by manufacturers. Thus, despite solving the free-rider problem, multiple manufacturers' RPM may harm consumers by softening inter-brand price competition. (C) 2015 Elsevier Inc. All rights reserved.
DOI
10.1016/j.irle.2015.02.006
Appears in Collections:
사회과학대학 > 경제학전공 > Journal papers
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