Some shops may provide a lot of information to a customer at a high cost to the store.If the customer then buys the product cheaper from a different store that does not provide this information, a free-rider problem emerges.A possible solution to this problem is:

Question

Quizplus · Accepted Answer

Resale price maintenance would ensure that all stores selling the product must sell it at the same price, thus eliminating the free-rider problem. This would discourage customers from seeking a cheaper alternative and would also incentivize stores to provide more information to customers, as it would not affect their pricing strategy.

Some Shops May Provide a Lot of Information to a Customer