Resale Price Maintenance in China: An Economic Perspective

Posted by Social Science Research Network

Resale Price Maintenance in China: An Economic Perspective – Shan Jiang (University of International Business and Economics (UIBE) School of Law) and D. Daniel Sokol (University of Florida – Levin College of Law ; George Washington University Law School Competition Law Center)

ABSTRACT: This article analyzes resale price maintenance (RPM), its economic principles, and its application in the United States, Europe and China. The application of RPM varies across each of these three jurisdictions. In China, there are competing economic goals, no clear standard (per se illegality versus rule of reason) and case outcomes that do not necessarily fully embrace an economic based approach. We identify those areas in Chinese antitrust jurisprudence that will shape enforcement and offer an economic approach that allows for internal consistency for decision-making.