In this memo, Matthew Bennett discusses the recent interest by competition authorities in vertical communications between manufacturers and retailers, and explains the dangers of conflating Recommended Retail Prices, which are relatively common and pro-competitive, with Retail Price Maintenance, which is treated as a hard-core competition law infringement in Europe.
How capacity constraints shape unilateral price effects in horizontal mergers
Examples include hospitals with a fixed number of beds, and hotels with a fixed number of rooms. In the article “Unilateral Price Effects in Horizontal...