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Rhodes, Andrew
ORCID: https://orcid.org/0009-0005-9460-6699 and Yang, Yang
(2025)
Resale Price Maintenance and Consumer Search.
TSE Working Paper, n. 25-1695, Toulouse
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Abstract
We provide a novel pro-competitive rationale for resale price maintenance (RPM). ,We consider a model where some consumers are fully informed about downstream prices while other consumers are not. When an upstream manufacturer imposes a floor on downstream prices, this qualitatively changes downstream competition— influencing not just the level, but also the dispersion, of prices. The manufacturer optimally imposes a price floor which just eliminates all downstream price dispersion, and this leads to both higher (aggregate) consumer surplus and higher total welfare as compared to the case without RPM.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | November 2025 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | Resale price maintenance, consumer search, price dispersion |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse Capitole |
| Site: | UT1 |
| Date Deposited: | 30 Jan 2026 13:19 |
| Last Modified: | 30 Jan 2026 13:21 |
| OAI Identifier: | oai:tse-fr.eu:131175 |
| URI: | https://publications.ut-capitole.fr/id/eprint/51694 |
