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article3 - is the price factor. If certain substitutes come...

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http://gregmankiw.blogspot.com/2007/03/resale-price-maintenance.html This blog entry details the reasoning behind having resale price maintenance in the United States. The spurring from this is that there was a recent Supreme Court ruling that resale price maintenance was no longer illegal under antitrust rules. For almost 100 years price maintenance has been illegal but now with the support of the Bush administration and others it has finally been made legal. I think that the idea of resale price maintenance is a good one to have legal. By allowing the MSRP it makes it possible for a more knowledgeable staff and better service at stores. The main fear is that there will be some type of problem with competition but from my vantage point it appears that the only thing that will be taken out of the equation
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Unformatted text preview: is the price factor. If certain substitutes come along and have a reduced price then it will force companies to lower their price anyway. Obviously there is the reverse side of this issue that concerns me. If I want a very specific item and I can’t find it anywhere cheaper, then I would be upset a bit because I’m having to pay more than I would normally Anytime you’ve got to fork out more money it is a cause for more concern. Overall though I feel that allowing resale price maintenance is a good thing as it will allow a better environment for making purchases as well as not having an adverse affect on other substitutes in the market....
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This note was uploaded on 03/02/2010 for the course ECON 110 taught by Professor Vernon during the Summer '07 term at BYU.

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