Bryan Caplan  

Supreme Court Overturns Per Se Rule; "Crazies" Rejoice

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Why I Believe in Moderate Glob... Richard Vedder, Sounding Reaso...

Price-fixing is no longer per se illegal, at least according to the New York Times. Decades after the big academic debate on resale price maintainence (RPM), five justices are convinced:

The court struck down the 96-year-old rule that resale price maintenance agreements were an automatic, or per se, violation of the Sherman Antitrust Act. In its place, the court instructed judges considering such agreements for possible antitrust violations to apply a case-by-case approach, known as a “rule of reason,” to assess their impact on competition. The new rule is considerably more favorable to defendants.

The decision was handed down on the last day of the court’s term, which has been notable for overturning precedents and for victories for big businesses and antitrust defendants.

Since I'm what Larry White of NYU (not to be confused with Larry White of the University of Missouri) calls "the 'antitrust crazies' who want to repeal of [sic] all antitrust laws," you know where I stand.


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COMMENTS (3 to date)
Acad Ronin writes:

I wonder if this will result in the revival of independent and specialized bookstores. If publishers prohibit discounting, perhaps small booksellers will be able to compete with Amazon.

Barkley Rosser writes:

@#$%^&*+=!!!

(the sound of "crazies" rejoicing?)

Barkley Rosser writes:

But, what I want to know is, "are the crazies rejoicing as much over the 'bong hits 4 Jesus' ruling?

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