Free Riding and Resale Price Maintenance, a Love and Hate Relationship

Is free riding bad for competition in the markets? Is it good and necessary to promote competition in the markets? Does free riding (being good or bad) depend on a market structure issue? A new pro-competitive justification arose since Leegin overturned Dr. Miles Court decision giving the business o...

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Autores:
Jaramillo, José Alfredo
Tipo de recurso:
Article of journal
Fecha de publicación:
2011
Institución:
Universidad Externado de Colombia
Repositorio:
Biblioteca Digital Universidad Externado de Colombia
Idioma:
spa
OAI Identifier:
oai:bdigital.uexternado.edu.co:001/7681
Acceso en línea:
https://bdigital.uexternado.edu.co/handle/001/7681
https://revistas.uexternado.edu.co/index.php/contexto/article/view/2977
Palabra clave:
Free riding
Minimum Resale Price Maintenance (RPM)
precompetitive justifications
rule of reason
per se treatment
Multichannel shopping
Courts vs. Regulation.
Rights
openAccess
License
http://purl.org/coar/access_right/c_abf2
Description
Summary:Is free riding bad for competition in the markets? Is it good and necessary to promote competition in the markets? Does free riding (being good or bad) depend on a market structure issue? A new pro-competitive justification arose since Leegin overturned Dr. Miles Court decision giving the business operators a rule of reason in order to determine antitrust harm by a resale price maintenance (RPM) conduct. American courts have dealt with free riding as a pro-competitive justification basing the analysis of this decision on the defendant’s rule of reason. Should American Courts reevaluate their holdings on minimum RPM’s, or should they keep tolerating manufacturer and retailers “free riding” on their leniency for anticompetitive effects?