Main menu For students For teachers Explore our subjects Student events & courses

Teaching Economics

Topic updates

Vertical restraint and monopoly power

Geoff Riley

2nd October 2016

Share this content:

Vertical restraints involve exclusive deals between businesses. To what extent do they break the norms of market competition and lead to higher monopoly profits and a loss of consumer welfare? or do they actually serve to enhance innovation / dynamic efficiency?

Sabotaging the Competition: Lessons from Intel

How did the US computer giant Intel maintain its competitive advantage over AMD without drawing attention from antitrust authorities? Michelle Sovinsky (University of Mannheim) explains how 'vertical restraints' were used to keep AMD down without dramatically forcing them to leave the market.

Share this content:

Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.