Brad Stone Quotes

Manufacturers Are Not Allowed To Enforce Retail Prices For Their Products. But They Can Decide Which Retailers To Sell To, And One Way They Wield That Power Is By Setting Price Floors With A Tool Called MAP, Or Minimum Advertised Price. MAP Requires Offline Retailers Like Walmart To Stay Above A Certain Price Threshold In Their Circulars And Newspaper Ads. Online Retailers Have A Higher Burden. Their Product Pages Are Considered Advertisements, So They Have To Set Their Promoted Prices At Or Above MAP Or Else Face The Manufacturer's Wrath And Risk The Firm's Limiting The Number Of Products Allocated Or Withdrawing Them Altogether.

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