The law is supposed to provide low scale firms with a trade relief
The competitor in the case has lowered his pricing to a break even point to attract more customers thus maximizing on his profit
Besides, small firms like ours realize these capabilities when we cannot compete evenly on a certain geographical area
This has called for fair trade laws to be instituted ØRobinson-Patman’s act is such a law
He brought the idea of profit maximization
Price differences should not go beyond costs differences
- A mistrust can lead to civil action
- The defendant should provide detailed information with regards to this mistrust
Supportive evidence from both the accused and the defendant should be provided
- Presence of supplier cartels should be investigated also
Application of This Law to Our Case
It is not advisable to practice price discrimination to our firm ØIt will create competitive injuries and damages ØPrivate damage action to the rival firm
Uncalculated move in terms of costs and trust
A framework to protect the interests of both parties to be developed
Winners and losers form this act
Millions of dollars will be lost in profit to the big supply chains ØBrokers and middlemen are the main beneficiaries of this law Cost sharing will be experienced in case of civil action
Knowledge gained helps people who would wish to start their business to know affordable methods for dealing with competition through price discrimination
- Blair, R. D., & Durrance, C. P. (2015). Private Damage Actions under the Robinson-Patman Act. The Antitrust Bulletin, 60(4), 384-401.
- DePasquale, C. (2015). The Robinson-Patman Act and the Consumer Effects of Price Discrimination. The Antitrust Bulletin, 60(4), 402-413.
- Karray, S., & Amin, S. H. (2015). Cooperative advertising in a supply chain with retail competition. International Journal of Production Research, 53(1), 88-105.
- Kirkwood, J. B. (2015). Reforming the Robinson-Patman Act to Serve Consumers and Control Powerful Buyers. The Antitrust Bulletin, 60(4), 358-383.
- Leffler, K., & Tatos, T. (2015). Competitive Injury and Damages under the Robinson-Patman Act: Morton Salt and Statistical Analysis. The Antitrust Bulletin, 60(4), 318-344.
- Ramirez, E. (2014). The FTC: A Framework for Promoting Competition and Protecting Consumers. Geo. Wash. L. Rev., 83, 2049.
- Ross, T. W. (1984). Winners and losers under the Robinson-Patman Act. The Journal of Law and Economics, 27(2), 243-271.
- Sokol, D. D. (2015). Analyzing Robinson-Patman. George Washington Law Review, 83(6).
- Walther, L. M., & Skousen, C. J. (2009). Managerial and cost accounting. Bookboon.