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...

Lump-sum quota bonuses are a specific type of quota bonus that provides a lump-sum transfer from a manufacturer to a retailer when the retailer's sales exceed a pre- determined quota. This paper explores whether lump-sum quota bonuses and two other vertical restraints, two-part tariffs and...

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...

This paper (only available in Spanish) summarises the relevant literature in the field of vertical restraints in connection with retail markets and distribution, and provides some insights from Chilean practice

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...