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Centre de Recherche en Économie et Statistique |  |
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Centre de Recherche en Économie et Statistique | |
| HAL: hal-00367492, version 1 |
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| International Journal of Industrial Organization 29, 4 (2011) 373-385 |
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| Anti-Competitive Effects of resale-Below-Cost Laws |
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| Marie-Laure Allain 1, 2Claire Chambolle 2, 3 |
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| (2011) |
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| We show that resale-below-cost laws enable producers to impose industry-wide price-floors to retailers. This mechanism suppresses downstream competition but also and more surprisingly dampens upstream competition, leading to higher prices and lower welfare. Price-floor may be more profitable for producers than resale price maintenance contracts and, when a resale price maintenance restraint may have ambiguous effect on welfare, price-floors are always welfare damaging. Retailers' buyer power appears as a key for a price-floor to work out. |
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| 1: | Centre de Recherche en Économie et Statistique (CREST) |
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INSEE – École Nationale de la Statistique et de l'Administration Économique |
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| 2: | Department of Economics, Ecole Polytechnique |
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CNRS : UMR7176 – Polytechnique - X |
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| 3: | Laboratoire sur les Organisations Industrielles dans l'Agro-Alimentaire (LORIA) |
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Institut national de la recherche agronomique (INRA) : UR1002 |
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| Subject | : | Humanities and Social Sciences/Business administration Humanities and Social Sciences/Economies and finances |
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| Price-floor – Resale Price Maintenance – Buyer Power – Competition |
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| hal-00367492, version 1 | |
| http://hal.archives-ouvertes.fr/hal-00367492 | |
| oai:hal.archives-ouvertes.fr:hal-00367492 | |
| From: Department Of Economics | |
| Submitted on: Wednesday, 11 March 2009 14:20:23 | |
| Updated on: Wednesday, 23 November 2011 11:37:39 | |
