Empirical Regularities in the Vertical Restraints of Manuacturing Firms

Xulia González ()

Atlantic Economic Journal, 2015, vol. 43, issue 2, 194 pages

Abstract: This paper exploits a unique panel data set of Spanish manufacturing firms that contains information on vertical restraints affecting retailers and wholesalers. First, we analyze the scope of vertical restraints by identifying industry and size heterogeneities. Second, we explore the determinants of resale price maintenance by focusing on the effect of an upstream firm’s effort to increase demand. After presenting a simple theoretical framework, we use a linear probability model to analyze the empirical determinants of a manufacturing firm’s control of the resale price. We find that firms that make a greater advertising effort impose a resale price more frequently, as do larger firms and those that impose other restraints such as exclusive territories. Copyright International Atlantic Economic Society 2015

Keywords: Vertical restraints; Resale price maintenance; Manufacturing sector; L22; L12 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:kap:atlecj:v:43:y:2015:i:2:p:181-194

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DOI: 10.1007/s11293-015-9452-8

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