| Author: | Rey, P. Tirole, J. |
| Title: | The logic of vertical restraints. |
| Journal: | American Economic Review
1986 : DEC, VOL. 76:5, p. 921-939 |
| Index terms: | RESTRICTIVE PRACTICES COMPETITION RETAILING COSTS PRICES |
| Language: | eng |
| Abstract: | It is shown that direct product competition acts as a tournament between retailers when informational problems or transaction costs prevent the manufacturer from using contracts based on their relative performances. Anticompetitive restraints such as exclusive territories and resale price maintenance which is shown to be not necessarily good substitutes,may or may not be privately desirable. It is also shown that privately desirable anticompetitive restraints may not be socially desirable. |
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