When do franchisors have market power? Antitrust remedies for franchisor opportunism

Article Abstract:

The market power inquiry that forms the basis of much antitrust enforcement does not translate well to the franchising context. The single-brand nature of franchise markets makes measurement of market power irrelevant. The anticompetitive harm that may result from the franchise relationship is likely to be based on a pre-contract information gap or high post-contract sunk costs incurred by the franchisee. Both contract law and antitrust law have a role in regulating the abuses that some franchisors may engage in, but antitrust inquiries must not focus solely on market power.

Remedies, Antitrust law, Market share

---

Maximum resale price restraints in franchising

Article Abstract:

The rule established by the US Supreme Court in 1968 in Albrecht v. Herald Co. that found franchisor-imposed maximum resale price restraints per se illegal has endured legal challenges, despite the fact that consumer welfare is harmed by the rule. The Court found that limiting prices harms franchisees and limits consumer choice. Allowing maximum price restraints would reduce consumer prices and increase franchisor profits. Franchisors have had to resort to nonprice restraints as a substitute for price controls, but such alternatives are less economically efficient.

Resale price maintenance, Price maintenance

---

Brand marketing, intrabrand competition, and the multibrand retailer: the antitrust law of vertical restraints

Article Abstract:

A structured rule of reason approach should be applied to both price and nonprice vertical restraints to better address the potential for restrictions placed on multibrand retailers to harm intrabrand competition. The structured approach should first apply three screening tests to rule out practices not likely to reduce competition. If the screening tests do not apply, a balancing approach could assess the merits and the costs of practices that may affect competition and intrabrand competition.

Economic aspects, Brand name products, Brand names, Restraint of trade, Vertical markets

Similar abstracts:

• Abstracts: Superstores are major FTC target; new antitrust theory says they're a distinct submarket. Who will pay for discarding of files in Sunbeam case?
• Abstracts: When bites are worse than barks; courts differ on when use of police dogs constitutes unreasonable force. First amendment in your face: aggressive demonstrations are no more than free speech in action
• Abstracts: Creating competitive market economies in Poland and Hungary. The privatization of the transportation industry in formerly communist countries: a study of Poland and Hungary
• Abstracts: Beyond Nuremberg: fifty years later, the debate continues on informed consent
• Abstracts: ER docs' mistakes can pain hospitals; a Texas appeals court says disclaimers and waivers can't shield against liability

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.