Abstract
Anti-trust policy in the United States and other countries towards vertical restrictions on distribution (restrictions placed by manufacturers on retailers’ prices and quantities), has been fragmented and unsettled. This is, in part, because of a lack of consensus on what these restraints represent. On the one hand, vertical restraints have been explained as devices of monopolistic control of cartel coordination. On the other, restraints have been viewed as devices that can be used as purely vertical instruments to implement ‘efficient’ forms of distribution.
We wish to thank Nancy Gallini, Yehuda Kotowitz. Marty Perry, Jim Rosse, Julio Segura Sanchez and members of seminars at the Federal Trade Commission, Stanford University, and the University of Western Ontario for helpful comments on an earlier draft of this chapter.
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© 1986 International Economic Association
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Mathewson, G.F., Winter, R.A. (1986). The Economics of Vertical Restraints in Distribution. In: Stiglitz, J.E., Mathewson, G.F. (eds) New Developments in the Analysis of Market Structure. International Economic Association Series, vol 77. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-18058-5_7
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