The Korean Journal of Economic Studies
The Effects of Resale Price Maintenance on Inter-Brand Competition
Se Hoon Bang(Korea Development Institute), Yangsoo Jin(Kim & Chang)Year 2014Vol. 62No. 3
Abstract
We analyze the effect of resale price maintenance (RPM) on the inter-brandcompetition in a multi-producer and multi-distributor environment. PreviousRPM literature mainly focused either on the effect of reducing intra-brandprice competition or on the effect of promoting inter-brand servicecompetition. We take into account the brand-specificity of RPM-inducedpre-sale services and show that RPM can soften not only intra-brand but alsointer-brand price competition.