Antitrust Law and Competition for Distribution
نویسنده
چکیده
An unsettled area of antitrust law is the regulation of the competitive process for product distribution and promotion. Competition for distribution involves vertical contracting with respect to product placement, promotional activity, or the decision to carry a particular product. This process includes controversial practices recently subject to intense scrutiny such as slotting allowances, loyalty discounts, bundled rebates, category management and exclusive dealing. Antitrust law has designed rules for each of these practices independently, ignoring the economic relationships between these business practices. This paper examines those relationships by focusing on the economics of competition for distribution. Viewing these practices as part of the competitive process for distribution exposes an antitrust policy that systematically mishandles the regulation of these contracts. The article concludes by arguing in favor of per se legality for distribution contracts foreclosing less than 40% of the market and agreements less than one year in duration. ♦ Assistant Professor, George Mason University Law School; J.D., University of California at Los Angeles School of Law, 2001; Ph.D., University of California at Los Angeles Department of Economics, 2003. I thank Benjamin Klein for valuable discussions, and Bruce Johnsen and Bruce Kobayashi for comments on earlier drafts. Please do not cite or distribute without permission of the author.
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تاریخ انتشار 2005