Improving retailers' incentives for service is a prominent efficiency defense for resale price maintenance (RPM). We investigate the incentives of symmetric manufacturers to use RPM when selling products through common retailers who provide services such as pre-sale advice. We show that the...

Im westdeutschen Buchhandel haben in den letzten Jahren große Veränderungen stattgefunden. Neben einer Vielzahl von kleinen Buchhandlungen sind in sehr guten Geschäftslagen Buchkaufhäuser entstanden, die auf einer Verkaufsfläche von mehreren tausend Quadratmetern über 100 000 verschiedene...

We investigate the incentives of manufacturers to use resale price maintenance (RPM) when selling products through common retailers. In our model retailers provide product specific pre-sales services. If the competitive retail margins are low, each manufacturer fixes a minimum price to induce...