When
Where
Kohei Kawaguchi is an Assistant Professor of Economics at The Hong Kong University of Science and Technology.
PAPER TOPIC: "Competitive Effects of Resale Price Maintenance Through Inventory: Evidence from the Publishing Industry"
ABSTRACT: This paper examines the competitive effects of resale price maintenance (RPM) through inventory decisions under demand uncertainty. We focus on the Japanese publishing industry where printed books are excepted from RPM prohibition. We develop and estimate a model of RPM in which price and inventory are determined before demand is realized. Counterfactual simulations show that the price ceiling due to RPM plays a welfare-enhancing role, whereas the price floor can improve supply-side welfare at the expense of consumer surplus. The parameter region for which price floor can improve consumer surplus exists but is narrow.
Zoom link available upon request. Please contact vadams@arizona.edu for information.