Vertical restraint and monopoly power
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?
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.