Minimum Resale Price Maintenance: Some Empirical Evidence from Maryland

7 Pages Posted: 8 Jan 2010  

Elizabeth M. Bailey

University of California, Berkeley - Haas School of Business

Gregory K. Leonard

Edgeworth Economics

Date Written: January 7, 2010

Abstract

On October 1, 2009, the State of Maryland enacted a statute that prohibits the use of minimum resale price maintenance (RPM). This was in response to the Supreme Court’s 2007 Leegin decision that held that RPM should be evaluated under the rule of reason rather than be considered per se illegal. The Maryland statute provides a natural experiment that can be used to analyze the effect of RPM on retail prices. We analyze the effect of the statute on video game prices in Maryland. Video games were used for this analysis because video game manufacturers have been known to impose RPM. Employing a difference-in-differences approach, we find no effect of the Maryland statute on video game prices.

Keywords: Resale Price Maintenance, Antitrust

JEL Classification: L42

Suggested Citation

Bailey, Elizabeth M. and Leonard, Gregory K., Minimum Resale Price Maintenance: Some Empirical Evidence from Maryland (January 7, 2010). Available at SSRN: https://ssrn.com/abstract=1532998 or http://dx.doi.org/10.2139/ssrn.1532998

Elizabeth M. Bailey

University of California, Berkeley - Haas School of Business ( email )

545 Student Services Building, #1900
2220 Piedmont Avenue
Berkeley, CA 94720
United States

Gregory K. Leonard (Contact Author)

Edgeworth Economics ( email )

333 Bush St.
Suite 1450
San Francisco, CA 94104
United States

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