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1999•Journal of Public Policy & MarketingRequires access

Will Khan Foster or Hinder Franchising? An Economic Analysis of Maximum Resale Price Maintenance

Roger D. Blair, Francine Lafontaine

Open publisher page 45 citations

Abstract

In this article, the authors consider the economic consequences of State Oil v. Khan (1997) for franchising. After discussing the evolution of antitrust policy regarding maximum resale prices, they examine the economics behind franchisors’ desire to impose price ceilings on franchisees. The authors show that the most likely explanations for this practice imply that maximum resale prices enhance consumer welfare.

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What this paper is about

In this article, the authors consider the economic consequences of State Oil v. Khan (1997) for franchising. After discussing the evolution of antitrust policy regarding maximum resale prices, they examine the economics behind franchisors’ desire to impose price ceilings on franchisees. The authors show that the most likely explanations for this practice imply that maximum resale prices enhance consumer welfare.

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OpenAlex reports 45 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

In this article, the authors consider the economic consequences of State Oil v. Khan (1997) for franchising. After discussing the evolution of antitrust policy regarding maximum resale prices, they examine the economics behind franchisors’ desire to impose price ceilings on franchisees. The authors show that the most likely explanations for this practice imply that maximum resale prices enhance consumer welfare.

Key concepts: Resale price maintenance, Consumer welfare, Economics, State (computer science), Economic analysis, Microeconomics, Welfare, Public economics

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