The Antitrust Revolution: Economics, Competition, and Policy

By John E. Kwoka Jr.; Lawrence J. White | Go to book overview

The Economic
and Legal Context

Vertical and complementary market relationships between firms continue to be areas of change for both microeconomics and antitrust policy. The issues involve firms that either are in a customer-supplier with each other (vertical) or that sell complements; as will be argued below, the latter type of relationship is often analytically similar to the former, and we will treat them similarly.

There is a history prior to the 1970s, for both law and economics, of muddy thinking and muddled analysis in this area (White 1989). At least part of the problem seems to have been difficulties in conceptualizing the relationships and in recognizing their fluidity; even terminology (e.g., “vertical restraints,” “foreclosure,” “refusal to deal”) may have played a role as well.

We will first address the economics of these relationships, and then address the law.


ECONOMICS

Some Fundamentals

A vertical relationship describes the business relationship between a supplier and a customer. Thus, a wheat farmer and a flour miller, the flour miller and a bread baking factory, the baking factory and a supermarket, etc., are each in a vertical relationship with the other. Often these relationships are described as “upstream” (the supplier) and “downstream” (the customer) relationships. Another way of describing them is that each party in principle is always facing a “make or buy” decision with respect to the goods or services of the other.1

This last point highlights the possibility of vertical integration: Verti-

1Overviews can be found in Katz (1989), Perry (1989), White (1989), and Comanor and Rey (1995,
1997). Recent articles include Choi and Stefanidis (2001), Chen (2001), and Carlton and Waldman
(2002).

-322-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
The Antitrust Revolution: Economics, Competition, and Policy
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 527

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.