Minimum Markup Law Has No Effect on the Number of Small Businesses, Gas Retailers

New Study Shows No Need to Keep Minimum Markup Law

An new study, “A Policy in Search of a Solution: A Study on the Impact of Minimum Markup Laws on Small Businesses and Gas Stations," by the Wisconsin Institute for Law & Liberty (WILL) shows that the Unfair Sales Act, otherwise known as the Minimum Markup law, does not protect small businesses from predatory pricing. 

From the WILL press release:

Co-authored by WILL’s William Flanders, PhD, and Ike Brannon, PhD, Visiting Fellow at the Cato Institute, the study uses econometric analysis of data from all 50 states to determine the relationship between state’s minimum markup laws and the number of small business retailers and the number of gas stations in a state. The key findings include:

  • Minimum markup laws have no effect on the number of small business retailers in a state.
  • General minimum markup laws have no effect on the number of gas stations in a state.
  • Gasoline-specific minimum markup laws have no effect on the number of gas stations in a state.

Flanders appeared on the Jay Weber show on WISN yesterday to discuss the study and it's findings. You can listen to the interview below:

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