Economists claim that a resale price maintenance agreement is not anti-competitive because

Question

Quizplus · Accepted Answer

Economists claim that a resale price maintenance agreement is not anti-competitive because if a supplier has market power, it will be likely to exert that power through wholesale price rather than retail price. This means that the supplier would set high wholesale prices, which the retailers would have to abide by, resulting in higher retail prices for consumers. Resale price maintenance agreements give suppliers the ability to ensure their products are sold at a certain price, preventing retailers from undercutting each other and maintaining fair competition in the market.

Economists Claim That a Resale Price Maintenance Agreement Is Not