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Tuesday, July 28, 2020 | History

2 edition of The policy implications of the economic analysis of vertical restraints found in the catalog.

The policy implications of the economic analysis of vertical restraints

Patrick Rey

The policy implications of the economic analysis of vertical restraints

by Patrick Rey

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  • 8 Currently reading

Published by Directorate-General for Economic and Financial Affairs, Commission of the European Communities in Brussels .
Written in English


Edition Notes

Dated November 1996.

StatementPatrick Rey, Francisco Caballero-Sanz.
SeriesEconomic papers / Commission of the European Communities -- no.119
ContributionsCaballero Sanz, Francisco., Commission of the European Communities. Directorate-General for Economic and Financial Affairs.
The Physical Object
Pagination53p. ;
Number of Pages53
ID Numbers
Open LibraryOL22823304M

"The purpose of this study is to analyze vertical restraints in distribution and ultimately to delineate policy guidelines and assess Canadian competition policy on restricted distribution in light of recent economic analysis of these restraints and developments in policy in Britain and the United States. Book: Vertical integration and vertical divestiture in the U. S. oil industry: economic analysis and policy implications.

This is in part due to more careful economic analysis of the effects of vertical mergers, and vertical restraints generally. (52) In these cases, the agencies have not revived the simpler approaches of a generation ago that found violations solely because there was significant foreclosure in the market.   The dominant, even though controversial, story on the competitive effects of vertical restraints--i.e., agreements between firms active at different levels of the distribution chain--is that interbrand competition will mitigate any anticompetitive exercise of market power by the manufacturer imposing vertical restraints on its distributors.

  I have found this book very useful and well-written. It presents a very thorough and up-to-date review of the literature on economic analysis of antitrust law, which is especially useful for economists doing consulting work in antitrust cases. It is also good as a supplementary reading in industrial economics' courses, and in antitrust s: 1. The study focuses on typical vertical restraints and has been rigorous in presenting the case law, and the pros and cons of each restraint in an admirably neutral manner. It even refers to a separate study whereby (lawful) RPM for book sales under an economic analysis does not necessarily lead to higher prices or otherwise undesirable.


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The policy implications of the economic analysis of vertical restraints by Patrick Rey Download PDF EPUB FB2

Get this from a library. The policy implications of the economic analysis of vertical restraints. [Patrick Rey; Francisco Caballero-Sanz; European Commission. Directorate-General for Economic and Financial Affairs.]. The policy concerning vertical restraints is both overly harsh and inconsistent.

The suggestions for policy changes are based on the fundamental purposes served by the alternative legal rules. A giant step forward would be taken by adopting Bork's long held contention that the rule of reason should condemn those practices that are economically inefficient and condone those that are economically efficient.

Types of Vertical Restraints. Economics of Vertical Restrains. Different Schools of Thought. Competitive effects of Vertical Restrains. Policy Conclusions on Vertical Restrains. Application of Article 81 to Vertical Restrains. General Principles of Article European "Structured" Rule of Reason.

Case. ECONOMIC ANALYSIS OF VERTICAL RESTRAINTS. e.g. the book market. policy implications do appear to be rather different from those emanating from the literature.

appropriate to handle vertical restraints. A substantiated economic case-by-case analysis is required.

An economic expert opinion may facilitate the self-assessment of companies as required by EC competition law. In any case, in absence of significant market power at the manufacturer’s and/ or retailer’s level, it is unlikely that vertical restraints are socially undesir-able.

Vertical Restraints and Antitrust Policy Richard A. Posnert Antitrust policy toward vertical restraints is the biggest substan-tive issue facing antitrust. (The biggest procedural/institutional/ administrative issue is overlapping enforcement authority -federal, state, and foreign, especially EU.) The Justice Department's suit.

Economic analysis of vertical restraints and the single market The heated debate among economists concerning vertical restraints has calmed somewhat and a consensus is emerging. Vertical restraints are no longer regarded as per se suspicious or per se pro-competitive.

Economists are less willing to make sweeping statements. policy implications by focusing on a particular restraint, namely, Resale Price Maintenance.

The report is organized as follows. This introductory section offers an overview of vertical restraints, i.e., of the various provisions often used in vertical agreements, and briefly discusses the principles of the Chilean Competition Law. Chapter 8 focuses on vertical relationships between firms and reviews several reasons why firms may want to use vertical restraints.

Explanations of vertical restraints that emphasise efficiency gains and others that emphasise welfare losses through the restriction of competition are analysed. Empirical evidence on vertical restraints is discussed. Empirically, vertical restraints appear to reduce price and/or increase output.

Thus, absent a good natural experiment to evaluate a particular restraint’s effect, an optimal policy places a heavy burden on plaintiffs to show that a restraint is anticompetitive. 1James Cooper is Attorney Advisor, Office of Policy Planning. Economic analysis has a clearly established role in the assessment of alleged infringements of Article 81 EC.

It is central, for example, in establishing whether a vertical agreement results in foreclosure, or in estimating the damage suffered by a customer of a cartel. 23 May - Lear Competition Notes, Abuse of Dominance, Competition Economics, Cooperation and Vertical Agreements Vertical Restraints in Electronic Commerce: an economic perspective.

Vertical Restraints (VRs) are commonly defined as agreements between two. The Policy Implications of the Economic Analysis of Vertical Restraints, by Patrick Rey and Francisco Caballero-Sanz ().

12 Macroeconomic prospects. Therefore, it is critical that policymakers have a keen understanding of which vertical restraints—limitations imposed on businesses by firms located. Assessing vertical restraints is also important in the context of the wider objective of achieving an integrated internal market.

Market integration enhances competition in the European Union. Companies should not be allowed to recreate private barriers between Member States where State barriers have been successfully abolished.

Experts examine the application of economic theory to antitrust issues in both the United States and Europe, discussing mergers, agreements, abuses of dominance, and the impact of market features.

Over the past twenty years, economic theory has begun to play a central role in antitrust matters. In earlier days, the application of antitrust rules was viewed almost entirely in formal terms; now.

The economic theory of vertical restraints Article (PDF Available) in Journal of Economic Surveys 20(5) December with Reads How we measure 'reads'. Policy Review on Vertical Restraints. By Joanna Goyder. 5 The contributors particular regard to the economic analysis of retailing, vertical agreements, mergers and market power.

He has produced with relevant legal and policy developments and their implications, and that such developments are communicated to clients.

Her role. “Marco Colino's book is an important contribution to the development of the law of vertical restraints in the EU. The subject matter concerns the heart of antitrust policy.

Her analysis of the economics of vertical restraints, the detailed scrutiny of the decisional practice in the US and the EU and the critical assessment of the current EU legislature are of outstanding quality.

Its analysis of joint ventures (1) explains that they violate U.S. law only when they manifest specific anticompetitive intent while they violate E.U. law either for this reason or because they lessen competition, (2) discusses the meaning of an “ancillary restraint” and demonstrates that whether a joint-venture agreement would be illegal.

This paper begins with an analysis of Leegin followed by an examination of the free rider theory, which concludes that the free rider explanation for vertical restraints has been greatly overused; the expansive variants of the theory, in particular, are flawed on their own terms.

It argues for a more positive or neutral perspective of free riding as positive externalities.The purpose of the book is to provide extensive guidance to practitioners, businesses and researchers. After discussing the pro-competitive rationale and potential negative effects of vertical restraints and the introduction of an economic approach by the Commission, the book analyses the block exemption regulation and critically reviews the.have important policy implications not only in terms of whether vertical restraints continue to be analyzed under the rule of reason rather than categorically condemned under the per se rule, but also to what extent antitrust agencies include vertical conduct in their enforcement portfolios.