ABSTRACT
The real importance of rpm, or of its prohibition or reduction, lies in its effects on the prices of particular goods and the deployment of resources between different economic activities. It is to be judged primarily in these terms, seen in the wider context of competition in industry and trade, and also in the yet wider context of the interests of consumers. The economics of rpm are generally discussed in terms of its effects on competition in the distributive trades. The historical evidence on the stability of rpm is not easy to interpret. Differences in national policies towards rpm in the member-countries of the European Economic Community may result in similar problems of enforcement. Despite the diversity of policies adopted and the differences in the economies in which they are applied, some conclusions emerge with some clarity. The termination of rpm does not automatically and in every instance lead to price competition in distribution.
