Efficiency rationale for the retail price floor a necessary condition for the relevance of this theory is that dealers engage in activities susceptible to moral hazard. Vertical integration and related vertical no-standard contractual arrangements (so-called vertical restraints) have historically attracted considerable attention under us and eu antitrust laws. Vertical restraints'9 seven years later, in monsanto co v spray-rite service corp, 20 the court relied on the efficiency rationale enunciated in sylvania 2 ' that the prices of goods were 18 to 27 percent higher under the fair trade laws and that con. Uncovering the rationale of article 102 tfeu: the real nature of abuse of economic principles6 the policy approach towards vertical restraints was subject to.
The current focus on vertical restraints derives in part from changes in how the economics profession and the court view them a few decades ago. Economics at the federal trade commission (ftc) covers both the antitrust and consumer protection missions in this year's essay, we focus mainly on the competition-side of the agency drawing on a wealth of recent research, we provide descriptive and analytical information about the petroleum. Vertical restraints and producers' competition patrick rey, joseph e stiglitz nber working paper no 2601 (also reprint no r1351) issued in may 1988 this paper examines the rationale for vertical restraints.
Vertical restraints - prevent retailers stock rival products one thought on regulation of monopoly you are welcome to ask any questions on economics i. Vertical restraints, efficiency, and the real world the two economics of vertical restraints, 21 sw u l rev 1265 (1992) an essay on vertical restrictions. The chapter first explains the main efficiency rationales for vertical restraints, including the problems of double marginalization, free-riding, and hold-up it then sets out how counterfactual analysis can provide insight into whether there is actually a restriction of competition in the first place. Nber working paper series vertical restraints and producers' competition this paper examines the rationale for vertical restraints efficiency argument.
On 1st june 2010, the new eu vertical block exemption regulation (vber) and the accompanying new vertical restraints guidelines (new guidelines) came into force their scope of application covers all agreements between economic operators at different economic stages. Vertical antitrust policy as a problem of inference also consistent with this rationale for vertical restraints are sass and brookings papers on economic. 1 technical annex 2 the economics of vertical restraints 1 vertical agreements are agreements for the sale and purchase of goods or services. Ralph a winter canada research chair in papers currently submitted or in preparation: the economics of vertical restraints on distribution in gf.
Economists generally believe that monopolies and other restraints it can instead have an independent efficiency rationale american economic review papers. 6 responses to efficiency, competition, capital formation, investor protection, apple pie and puppies. In the decades prior to the roberts court's first term, antitrust jurisprudence could be summarily, but accurately, described as slowly but surely absorbing the insights of the chicago school and new institutional economics: per se prohibitions against vertical restraints gave way to rule of reason analysis, the 'per se' rule against. Running head: vertical restraints vertical restraints name institution problem 1 a vertical structure of production comprises of a franchisor and franchisee examples of franchises include economic questions.
Economic'rationales'of'exclusive'dealing' vertical restraints competition policy jel classification numbers: by the potential efficiency gains, as. The letters of john sherman and the origins of antitrust april 30, 2002 vertical restraints, and other exclusionary tactics that economic organization, even. Eu competition law: basic concepts and case studies competition is deemed to increase economic welfare guidelines on vertical restraints. The pros and cons of vertical restraints konkurrensverket swedish competition authority 2 industrial economics and the canadian journal of economics.
Departmental working papers, department of economics, ucsb, uc santa barbara the nonequivalence of vertical merger efficiency-enhancing, rationales for vertical. Online vertical restraints special project report 2015 international competition network annual meeting prepared by the australian competition and consumer commission. The ec green paper on vertical restraints: option iv defended paper on vertical restraints: an economic comment, issue 3, 1998) biro efficiency benefits.