Competitive Effects of Price Parity AgreementsClick here to read the full article online
Competition authorities have been hostile towards price parity agreements. However, not all agreements are alike. Wholesale price parity agreements, like those observed in the airline ticket industry, can intensify competition, not fetter it—to the benefit of consumers. Salvatore Piccolo and Kadambari Prasad set out the different types of parity agreement and explain the factors that determine their impact on consumers.