Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/49883 
Year of Publication: 
2010
Series/Report no.: 
Working Paper No. 565
Publisher: 
The Johns Hopkins University, Department of Economics, Baltimore, MD
Abstract: 
This paper identifies conditions under which an industry-wide practice of posted (or list) pricing is a plus factor sufficient to conclude that firms violated Section 1 of the Sherman Act. For certain classes of markets, it is shown that, under competition, all firms setting a list price with a policy of no discounting is contrary to equilibrium. Thus, if all firms choose posted pricing, it is to facilitate collusion by making it easier for them to coordinate their prices. It is then argued that the adoption of posted pricing communicates the necessary intent and reliance to conclude concerted action.
Document Type: 
Working Paper

Files in This Item:
File
Size
266.15 kB





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