Resource title

Resale Price Maintenance and the Service Argument (in the Book Trade)

Resource image

image for OpenScout resource :: Resale Price Maintenance and the Service Argument (in the Book Trade)

Resource description

The paper introduces a specification of the demand side which allows RPM to have different effects on prices and on service, which may increase or decrease due to RPM. A feature of the model which deviates from those found in the literature is due to the introduction of a class of consumers who do not search but decide on a purchase spontaneously. More interestingly social welfare is reduced by RPM (at least locally) exactly under those circumstances where RPM induces higher service (and price). Hence, welfare decreases exactly in the case which was frequently presented for the justification of RPM to promote service.

Resource author

Norbert Schulz

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/22346

Resource license

Adapt according to the presented license agreement and reference the original author.