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On Vertical Restraints and the Law: A Note

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  • Michael Waterson

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.

Suggested Citation

  • Michael Waterson, 1988. "On Vertical Restraints and the Law: A Note," RAND Journal of Economics, The RAND Corporation, vol. 19(2), pages 293-297, Summer.
    • Handle: RePEc:rje:randje:v:19:y:1988:i:summer:p:293-297
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    1. Martín-Herrán, Guiomar & Sigué, Simon Pierre & Zaccour, Georges, 2011. "Strategic interactions in traditional franchise systems: Are franchisors always better off?," European Journal of Operational Research, Elsevier, vol. 213(3), pages 526-537, September.

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