On Vertical Restraints and the Law: A Note
Volume: Volume 19, No. 2
Issue: Summer 1988
Pages: pp. 293-297
Authors: Michael Waterson
Title: On Vertical Restraints and the Law: A Note
Abstract: This note questions the contention in recent work by Mathewson and Winter that resale price maintenance can be mimicked in its effects by other vertical restraints. I argue that territorial restraints may be of little use as a substitute for price restraints, but that they may have other beneficial effects from the manufacturer's viewpoint. Evidence arising from the prohibition of resale price maintenance in the United Kingdom supports the view developed here.
JEL Classification
Market Structure: Industrial Organization and Corporate Strategy (6110)
Microeconomics Theory of Firm and Industry under Imperfectly Competitive Market Structures (0226)