Resale Price Maintenance Post Leegin: A Model of RPM Incentives

Resale Price Maintenance Post Leegin: A Model of RPM Incentives The prominent Babies R Us decision (McDonough et al. v. Toys R Us, Inc., 2009) was the first to explore the economic consequences of resale price maintenance after the Supreme Court’s Leegin decision. Previously, litigation concerned the presence or absence of an agreement; but that changed with the new jurisprudence which instead emphasized the restraint’s direct anti-competitive effects. While the district court’s decision in the Babies R Us case rested on the factual circumstances of the case, it did not have before it an economic model through which those facts could be integrated. This paper offers such a model, the predicates of which are drawn from the case. The conclusions derived from the model are entirely consistent with the court’s decision Review of Industrial Organization Springer Journals

Resale Price Maintenance Post Leegin: A Model of RPM Incentives

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Springer US
Copyright © 2017 by Springer Science+Business Media New York
Economics; Industrial Organization; Microeconomics
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