%0 Journal Article
%T The Role of Price Floor in a Differentiated Product Retail Market
%A Barna Bako
%J Economic Analysis and Policy
%D 2010
%I 
%X The ability of a manufacturer to enhance competition among its retailers by imposing a price floor was recently introduced in the literature. The purpose of this article is to revisit this anti-collusive explanation of the retail price maintenance in a more general model in which we introduce asymmetric retailers. We find that a manufacturer can amplify the retail market's competition by imposing a price floor when retailers sell differentiated products. This result contradicts the prevailing concept of retail price maintenance.
%U http://www.eap-journal.com/archive/v40_i3_06_bako.pdf