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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...
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In a market with two exclusive manufacturer-retailer pairs, we show that colluding manufacturers may not be able to attain supra-competitive profits when contracts with retailers are secret. The stability of manufacturer collusion depends on the retailers' beliefs. We consider various dynamic...
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We provide a theory of how RPM facilitate upstream cartels absent any information asymmetries using a model with … manufacturers if they collude. We thus provide a novel theory of harm for resale price maintenance when manufacturers collude and … illustrate the fit of this theory in various competition policy cases. …
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