The Supreme Court is examining a longstanding law in the United States banning resale price maintenance. Resale price maintenance is when a manufacturer requires a retailer to sell their products above a minimum price. An example would be if Apple required stores to sell iPods for at least $400. The practice was banned to increase competition, but there are doubts as to whether it serves its purpose.
Greg Mankiw discusses the court case and his take on the practice on his blog. Here is a NY Times article on the concept.
Do you think resale price maintenance should be allowed? Make sure you read the articles before responding to keep the discussion informed.
(Source: Greg Mankiw's Blog)