The making of the modern retail market: economic theory, business interests and economic policy in the passage of the 1964 Resale Prices Act

This article makes a critical examination of the economic case made for the prohibition of individual resale price maintenance (IRPM) in 1964. The Resale Prices Act had major implications for the future structure of British retailing and was lobbied for by multiple grocery retailers. This article demonstrates how a government enquiry which preceded the legislation privileged one side of the debate and marginalised other – arguably more rigorous – analysis. The article endorses a central role for the Institute of Economic Affairs (IEA) and is a case study of the role of economic theory in business–government relations and the development of economic policy.