Competitive effects of resale price maintenance through inventory : evidence from publishing industry

by Kohei Kawaguchi, Jeff Qiu, and Yi Zhang

This paper examines the competitive effects of resale price maintenance (RPM) through inventory decisions under demand uncertainty. We focus on the Japanese publishing industry where RPM is allowed. We develop and estimate a model of RPM in which price and inventory are determined before demand is realized. Counterfactual simulations show that the RPM model would yield a higher consumer surplus than a wholesale model due to a sufficient inventory and a lower price of new titles. Moreover, we show that the price ceiling due to RPM plays a welfare-enhancing role, whereas the price floor is irrelevant in the industry.

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Year of publication:	[2022]
Authors:	Kawaguchi, Kohei ; Qiu, Yin Jia ; Zhang, Yi
Publisher:	Washington, DC : U.S. Department of Justice
Subject:	Resale price maintenance \| Return policy \| Vertical relationship \| Antitrust law \| Demand uncertainty \| Inventory \| Product variety \| Publishing industry \| Book stores \| Preisbindung \| Einzelhandel \| Retail trade \| Wettbewerbspolitik \| Competition policy \| Vertikale Integration \| Vertical integration \| Lagermanagement \| Warehouse management \| Preismanagement \| Pricing strategy \| Kartellrecht \| Wettbewerbsbeschränkung \| Restraints of competition \| Verlagswesen

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Extent:	1 Online-Ressource (circa 62 Seiten) Illustrationen
Series:	Economic Analysis Group discussion paper. - Washington, DC : [Verlag nicht ermittelbar], ZDB-ID 2684884-3. - Vol. EAG 22, 5 (December 2022)
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	hdl:10419/284005 [Handle]
Classification:	L11 - Production, Pricing, and Market Structure Size; Size Distribution of Firms ; L13 - Oligopoly and Other Imperfect Markets ; L42 - Vertical Restraints; Resale Price Maintenance; Quantity Discounts ; L81 - Retail and Wholesale Trade; Warehousing ; L82 - Entertainment; Media (Performing Arts, Visual Arts, Broadcasting, Publishing, etc.) ; M31 - Marketing ; K21 - Antitrust Law
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013464471