Minimum Price Maintenance Agreements and the Premium Pricing Strategy. by Ethical and Regulatory Issues Journal of Legal

Minimum Price Maintenance Agreements and the Premium Pricing Strategy.

By Ethical and Regulatory Issues Journal of Legal

  • Publication Date: 2010-01-01
  • Genre: Law

Book Summary

INTRODUCTION There has been a significant amount of research in regard to Porter's general strategies. The research has shown that a differentiation strategy, if successfully implemented, can lead to a sustainable competitive advantage, as well as allowing the business to implement a premium pricing strategy. Much of this research, however, was conducted with the perimeters of the stringent Sherman Antitrust Act, with good reason. For the past decade courts have uniformly refused to permit vertical price maintenance agreements on the grounds that they are conducive to cartels and are predisposed to exhibit anticompetitive effects. As a result, courts imposed a per se prohibition on price maintenance agreements. Under the per se standard, courts would invalidate any restraint in furtherance of a price maintenance agreement, without inquiring into the subject nature of the price maintenance agreement, or the actual effect of the alleged agreement.

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