Abstract
Many platforms have used a Price Parity Clause (PPC) to prevent sellers charging lower prices on other sales channels. PPCs are often considered anti-competitive and have been banned in some jurisdictions. We provide a novel rationale—centered on how PPCs affect platforms’ data acquisition—for why a complete ban on PPCs may harm buyers and sellers.
Keywords
Price Parity Clauses; Platforms; Data; Product Discovery;
JEL codes
- D43: Oligopoly and Other Forms of Market Imperfection
- D83: Search • Learning • Information and Knowledge • Communication • Belief
- L13: Oligopoly and Other Imperfect Markets
- L42: Vertical Restraints • Resale Price Maintenance • Quantity Discounts
Reference
Andreea Enache, and Andrew Rhodes, “Price Parity Clauses and Platform Data Acquisition”, TSE Working Paper, n. 25-1661, September 2025.
See also
Published in
TSE Working Paper, n. 25-1661, September 2025