We investigate the effect of banning resale-below-cost offers. There are two retailers with heterogeneous bargaining positions in relation to a monopolistic manufacturer. Each retailer sells two goods: one procured from the monopolistic manufacturer and the other, from a competitive fringe. In...

Although much has been written about RPM and Exclusive Dealing, acting alone, scant attention has been paid to the welfare outcome when the 2 restraints are imposed together. The article examines 2 such cases. Salton's George Foreman Contact Grills and ordinary incandescent light bulbs. It shows...

This article responds to Professor Benjamin Klein's recently published article that describes a comprehensive procompetitive rationale for RPM - resolving the incentive incompatibility between the brand manufacturer and the retailers that sell that brand. Retailers commonly have insufficient...

In many settings, behavioral economists have documented a price reference effect: the fact that a consumer's willingness to pay for a good is affected by difference between the observed price and the reference price they rationally expect. In this paper, we show that such preferences interact...

This paper investigates two coordination mechanisms in a simple distribution channel: 1) the manufacturer's suggested retail price (MSRP) and 2) the minimum advertised price (MAP). With a MSRP, the retailer can engage in a price discount policy to maintain control of the selling price. With a...