Price Fixing
OK, I know we're feeling a bit bruised after our Econ finals...so let's talk about price fixing some more!
The U.S. Supreme Court has agreed to reconsider a 95-year-old rule that forbids companies from setting a minimum retail price for their products:
High court to weigh ban on price fixing
The currently-standing 1911 ruling "outlaws contracts or agreements between manufacturers and independent sellers that require these retailers to charge a minimum price for a product." In essence, it outlaws price-fixing.
If overturned, this case could have significant pricing ramifications across many industries, potentially leading to higher retail prices for consumer products. Of course, it could also strongly benefit upscale brands and brands in specialty markets such as department stores, while digging into the revenues of discount superstores and chains such as Wal-Mart. It would also empower manufacturers to have much more power in dictating the markets in which their products are sold, and the desired quality of the brand, among other benefits.
Stirring up the pot like this might be just what is needed to resuscitate a once-thriving specialty market that has been in decline since the huge discount chains began gobbling up old department stores and homogenizing our shopping experience.
Something to ponder over a whiskey sour while you check your Econ grades on Wavenet.
Happy holiday shopping!
The U.S. Supreme Court has agreed to reconsider a 95-year-old rule that forbids companies from setting a minimum retail price for their products:
High court to weigh ban on price fixing
The currently-standing 1911 ruling "outlaws contracts or agreements between manufacturers and independent sellers that require these retailers to charge a minimum price for a product." In essence, it outlaws price-fixing.
If overturned, this case could have significant pricing ramifications across many industries, potentially leading to higher retail prices for consumer products. Of course, it could also strongly benefit upscale brands and brands in specialty markets such as department stores, while digging into the revenues of discount superstores and chains such as Wal-Mart. It would also empower manufacturers to have much more power in dictating the markets in which their products are sold, and the desired quality of the brand, among other benefits.
Stirring up the pot like this might be just what is needed to resuscitate a once-thriving specialty market that has been in decline since the huge discount chains began gobbling up old department stores and homogenizing our shopping experience.
Something to ponder over a whiskey sour while you check your Econ grades on Wavenet.
Happy holiday shopping!
posted by Michael at 1:22 AM
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