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31 Antitrust Bull. 733 (1986)
The Perverse Effects of the Robinson-Patman Act

handle is hein.journals/antibull31 and id is 741 raw text is: The Antitrust Bulletin/Fall 1986 The perverse effects of the Robinson-Patman Act BY MARIUS SCHWARTZ* I. Introduction Passed in 1936 as a substantial amendment of section 2 of the Clayton Act, the Robinson-Patman Act is the key U.S. antitrust law against price discrimination. The act was originally intended to aid small food and drug retailers against the large chain stores by preventing the latter from obtaining discriminatory conces- sions from suppliers. Although enforced less vigorously in recent years, the act has long been controversial. This article, however, is not intended as an overall appraisal of the Robinson-Patman Act, nor as an analysis of the broader issue of optimal policy toward price discrimination. Its purpose is to point out subtle and unintended perverse effects induced by the act, effects stemming largely from difficulties in obtaining the * Assistant Professor of Economics, Georgetown University, and Economist, Antitrust Division, U.S. Department of Justice. AUTHOR'S NOTE: The views expressed here do not purport to reflect those of the Department of Justice. I wish to acknowledge the helpful comments of Tim Brennan, William J. Curran III, John Filippini, Joseph McAnneny, Robert McGuckin, Russell Pittman, Bruce Snapp, and Lawrence White, and the able research assistance of Peter Hinkle and Pam McCarthy. c 1986 by Federal Legal Publications, Inc.

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