On Vertical Restraints and the Law: A Note

Michael Waterson

RAND Journal of Economics, 1988, vol. 19, issue 2, 293-297

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.

Date: 1988
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