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Review of Industrial Organization

Online RPM and MFN Under Antitrust Law and Economics

  • 28-12-2016
Published in:
Authors
Pinar Akman
D. Daniel Sokol
Published in
Review of Industrial Organization | Issue 2/2017

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Abstract

The legal framing of a firm’s pricing strategy can determine whether it constitutes online resale price maintenance (RPM) or online most favored nation (MFN). Together, cases that involve online RPM and MFN can be viewed as a natural experiment of how antitrust economics and law may adapt to an online world. Thus far, legal theories that have been inconsistent with economic theories have dictated enforcement across jurisdictions, which has led to confusion that thwarts potentially efficient business practices. This paper distinguishes issues of online RPM from traditional RPM and online RPM from online MFN. We apply the economics learning to RPM and analyze the antitrust cases of online RPM and MFN to date in the United States, Europe, and Australia. Finally, we offer policy recommendations that reduce the confusion in current legal doctrine.

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previous article Resale Price Maintenance and the Tenth Anniversary of Leegin
next article Resale Price Maintenance: An Economic Analysis of its Anticompetitive Potential
Title
Online RPM and MFN Under Antitrust Law and Economics
Authors
Pinar Akman
D. Daniel Sokol
Publication date
28-12-2016
Publisher
Springer US
Published in
Review of Industrial Organization / Issue 2/2017
Print ISSN: 0889-938X
Electronic ISSN: 1573-7160
DOI
https://doi.org/10.1007/s11151-016-9560-x
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Other articles of this Issue 2/2017

Flawed Economic Models Have Misled RPM Policy: Changes in Canada, Europe and the United States

Resale Price Maintenance and the Tenth Anniversary of Leegin

Inducing Cooperation with a Carrot Instead of a Stick

Resale Price Maintenance: An Economic Analysis of its Anticompetitive Potential

Leegin and the Economics of Resale Price Maintenance

Resale Price Maintenance Post Leegin: A Model of RPM Incentives

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