Regulating Recommended Retail Prices

A new version of this paper, co-authored with Edona Reshidi, has become available on July 13, 2022. We show that in the absence of regulation only an equilibrium exists where the manufacturer charges the same wholesale prices across retailers. Regulating RRPs enables manufacturers to commit to their unobserved contracts, creating an equilibrium with wholesale price discrimination.

For the paper, please click here.