In this article, Dr. Thomas Overstreet summarizes the various economic theories of RPM that were in the literature at the time of the Leegin decision and discusses the limited developments in the economic literature regarding RPM published since that decision. He also discusses the differences of opinion that existed among the economists that signed the economists amicus brief regarding how to actually apply the rule of reason to a RPM case. Dr. Overstreet discusses what remains to be done by economists to provide greater clarity concerning how to actually implement the rule-of-reason in litigated matters involving RPM.
Dr. Overstreet was one of a select group of economists invited to contribute to an amicus brief filed with the Supreme Court in the Leegin case.
Assessing umbrella pricing incentives
When collusive agreements involve a subset of firms in an industry, they may create the incentive and ability for firms that are not participants in the cartel...