Evidence-Based Cultural Policy – Advances in Empirical Research on Fixed Book Price Agreements

In the EU, Resale Price Maintenance (RPM) is usually prohibited under Art. 101(1) TFEU; however, exemptions are possible when consumers benefit from the measure (Art. 101(3) TFEU). The German Fixed Book Price (FBP) system is a form of RPM. This article evaluates the efficiencies of FBP systems as a well-documented example of RPM by reviewing recent high-quality empirical evidence, including natural experiments and structural welfare analyses. The findings show that these systems enhance consumer welfare by promoting non-price competition, fostering a dense network of independent bookstores, and increasing both product variety and total sales volume. While traditional theory suggests FBP systems increase consumer prices, newer data indicate nuanced effects, often showing average price reductions or negligible increases alongside substantial efficiency gains. These results support the use of FBP systems as an effective instrument for achieving cultural policy goals, such as protecting bibliodiversity and public accessibility to books. Ultimately, these conclusions corroborate the notion that evaluating the overall impact of RPM on consumer welfare needs to account for the specific features of the market at hand.