« Back to all events

Resale Price Maintenance in Consumer Good Markets: An Economic Justification for the Prohibition of RPM

Dates:
  • Wed 27 Feb 2019 10.30 - 12.30
  Add to Calendar 2019-02-27 10:30 2019-02-27 12:30 Europe/Paris Resale Price Maintenance in Consumer Good Markets: An Economic Justification for the Prohibition of RPM

The thesis contributes to the debate on the EU’s approach to the business practice of resale price maintenance (RPM), which is widely criticized as too strict and in conflict with what is considered to be the consensus in the economic literature. The thesis critically dissects the economic consensus, on which the critique against the EU’s approach is based, by analyzing the empirical evidence that is cited to support the claim that RPM can frequently be explained by the service-based RPM models and shows that there is no convincing evidence that would support the significance of these positive RPM models that predict positive effects on welfare. To support this finding the thesis collects new evidence by surveying the marketing literature and shows that not only is there no convincing evidence that the positive RPM models frequently apply, but to the contrary there is evidence that these models are inconsistent with the real world phenomenon of RPM. Having refuted the service-based models the thesis takes up the scientific challenge that it takes a theory to beat a theory and proposes to fill the gap with three price-based models. The thesis offers an analysis of the three price-based RPM models, first from the perspective of welfare effects and then from a broader economic perspective in an attempt to ultimately show that the EU approach to RPM can be justified based on these economic models. All three models explain the situation in which RPM is used by a branded good manufacturer to create the perception of high quality, which is used either as a credible quality signal, becomes a component of the product or is used to bias the consumer decision; they thus enter the difficult terrain of consumer preference formation and of markets for the intangible components of a product.

Sala degli Stemmi - Villa Salviati- Castle DD/MM/YYYY
  Sala degli Stemmi - Villa Salviati- Castle

The thesis contributes to the debate on the EU’s approach to the business practice of resale price maintenance (RPM), which is widely criticized as too strict and in conflict with what is considered to be the consensus in the economic literature. The thesis critically dissects the economic consensus, on which the critique against the EU’s approach is based, by analyzing the empirical evidence that is cited to support the claim that RPM can frequently be explained by the service-based RPM models and shows that there is no convincing evidence that would support the significance of these positive RPM models that predict positive effects on welfare. To support this finding the thesis collects new evidence by surveying the marketing literature and shows that not only is there no convincing evidence that the positive RPM models frequently apply, but to the contrary there is evidence that these models are inconsistent with the real world phenomenon of RPM. Having refuted the service-based models the thesis takes up the scientific challenge that it takes a theory to beat a theory and proposes to fill the gap with three price-based models. The thesis offers an analysis of the three price-based RPM models, first from the perspective of welfare effects and then from a broader economic perspective in an attempt to ultimately show that the EU approach to RPM can be justified based on these economic models. All three models explain the situation in which RPM is used by a branded good manufacturer to create the perception of high quality, which is used either as a credible quality signal, becomes a component of the product or is used to bias the consumer decision; they thus enter the difficult terrain of consumer preference formation and of markets for the intangible components of a product.


Location:
Sala degli Stemmi - Villa Salviati- Castle

Affiliation:
Department of Law

Type:
Thesis defence

Supervisor:
Prof. Heike Schweitzer (Freie Universität Berlin)

Co-Supervisor:
Prof. Giorgio Monti

Defendant:
Melanie Ariane Schwaderer (EUI - Department of Law)

Examiner:
Prof. Pace Lorenzo F. (Università degli Studi del Molise)
Professor Rupprecht Podszun (University of Dusseldorf)

Contact:
Matteo Passigli - Send a mail

Similar events

 

Page last updated on 18 August 2017