Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/284005 
Year of Publication: 
2022
Series/Report no.: 
EAG Discussion Paper No. EAG 22-5
Publisher: 
U.S. Department of Justice, Antitrust Division, Economic Analysis Group (EAG), Washington, DC
Abstract: 
This paper examines the competitive effects of resale price maintenance (RPM) through inventory decisions under demand uncertainty. We focus on the Japanese publishing industry where RPM is allowed. We develop and estimate a model of RPM in which price and inventory are determined before demand is realized. Counterfactual simulations show that the RPM model would yield a higher consumer surplus than a wholesale model due to a sufficient inventory and a lower price of new titles. Moreover, we show that the price ceiling due to RPM plays a welfare-enhancing role, whereas the price floor is irrelevant in the industry.
Subjects: 
Resale price maintenance
Return policy
Vertical relationship
Antitrust law
Demand uncertainty
Inventory
Product variety
Publishing industry
Book stores
JEL: 
L11
L13
L42
L81
L82
M31
K21
Document Type: 
Working Paper

Files in This Item:
File
Size
749.47 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.