Robinson Patman Act Research Paper

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Introduction and Overview of the Robinson-Patman Act

Robinson-Patman Act (Protected competition)The Robinson–Patman Act of 1936 (or Anti-Price Discrimination Act, Pub. L. No. 74-692, 49 Stat. 1526 (codified at 15 U.S.C. § 13)) is a United States federal law that prohibits anti-competitive practices by producers, specifically price discrimination. If attempts at self regulation are too strong they may violate this act says (Ross, 1984) in "Winners and Losers under the Robinson-Patman Act" and goes onto say “Liability under section 2(a) of the Act (with criminal sanctions) may arise on sales that involve the following:
• discrimination in price;
• on at least two consummated sales;
• from the same seller;
• to two different purchasers;
• sales …show more content…
Product name: NetExplorer.
●ABC Company experiences substantial profit, selling NetExplorer at $24.99 per unit, with a break-even sales point at $17.99 per unit and total cost to manufacture per unit is $17.99.
●Recently, there is an increase in consumer base and sales of 15% due to internet marketing and the launching of an online store.
●ABC Company’s main competitor is XYZ Company, and ABC Company learned that the XYZ Company manufactures its product for a total cost of $21.00 per unit.
●XYZ Company also manufactures a similar version of NetExplorer, and retail their product at $24.99.
●It was found out that XYZ Company's total cost per unit is $21.00, with an estimated break even sales point at $21.00 per unit.
●XYZ Company has a slightly larger percentage of the market share, as it was established before the ABC Company.

Legal …show more content…
(1984). "Winners and Losers under the Robinson-Patman Act". Journal of Law and Economics. 27 (2): 243–271

Gifford, D.J., & Kudrle, R.T. (2010). The Law and Economics of Price Discrimination in Modern Economies: Time for Reconciliation? California: University of California, Davis.

Investopedia, (n.d.). Price Ceilings and Floors. Retrieved from, https://www.investopedia.com/ exam-guide/cfa-level-1/microeconomics/price-ceilings-floors.asp

Price Discrimination : Robinson-Patman Violations (n.d.). Federal Trade Commission. Retrieved from https://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/price-discrimination-robinson-patman

Rajagopalan, L. (September 16, 2013). Robinson-Patman and its implications for marketers. Retrieved from https://pixelballads.wordpress.com/2013/09/16/robinson-patman-act-and-its-implications-for-marketers/

Taylor, B. (2006). Price Floors. Retrieved from, http://economics.fundamentalfinance.com/ micro_price-floor.php

Universal Class, (n.d.). What is the meaning of ethics in business? Retrieved from,
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