Interlocking relationships and quantity rationing

Simen Ulsaker

Economics Letters, 2016, vol. 146, issue C, 47-49

Abstract: As shown by Rey and Vergé (2010), resale price maintenance can be used to maximize industry profit when competing manufacturers sell their brands through the same competing retailers. The present article shows how quantity rationing non-linear tariffs can be used to achieve the same outcome.

Keywords: Quantity rationing; Resale price maintenance; Vertical contracting; Common agency (search for similar items in EconPapers)
JEL-codes: L11 L13 L42 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:146:y:2016:i:c:p:47-49

DOI: 10.1016/j.econlet.2016.07.004

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