Vertical relationships Flashcards
1
Q
What is interbrand and intrabrand competition?
A
- Interbrand is between different brands
- Intrabrand is between different retailers for the same brand
2
Q
What’re some examples of vertical restraints?
A
- Non linear contracts (Per unit and fixed fee)
- Resale price maintenance
- Exclusive territory
- Exclusive dealing (only sell manuf. brand)
- Selective distribution (Manuf. only allows certain retailers e.g. selfridges)
3
Q
Which article prohibits agreements between firms?
A
Article 101 of European law prohibits VA unless they are welfare enhancing
4
Q
When and how was RPM blacklisted?
A
Banned in UK from 1964 under resale price act, OTC medicines offered conditional acceptance until 2001
