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
Replaced by
Andreea Enache, and Andrew Rhodes, “Price Parity Clauses and platform data acquisition”, Economics Letters, vol. 256, n. 112635, October 2025.
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