Arbeitspapier
Who benefits from resale-below-cost laws?
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 equilibrium, banning resale-below-cost offers can decrease the retailers' prices. The ban can benefit the weak retailer in terms of bargaining position and increase the total consumer surplus, although it harms the dominant retailer and the monopolistic manufacturer. Contrary to the basic scenario, when the weak retailer is horizontally separated, the ban benefits the monopolistic manufacturer
- Language
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Englisch
- Bibliographic citation
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Series: ISER Discussion Paper ; No. 875
- Classification
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Wirtschaft
Oligopoly and Other Imperfect Markets
Monopolization; Horizontal Anticompetitive Practices
Marketing and Advertising: Government Policy and Regulation
Firm Behavior: Theory
- Subject
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Loss-leader Pricing
Channel Power
Vertical Relations
- Event
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Geistige Schöpfung
- (who)
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Matsushima, Noriaki
Miyaoka, Akira
- Event
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Veröffentlichung
- (who)
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Osaka University, Institute of Social and Economic Research (ISER)
- (where)
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Osaka
- (when)
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2013
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Matsushima, Noriaki
- Miyaoka, Akira
- Osaka University, Institute of Social and Economic Research (ISER)
Time of origin
- 2013