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Law and Economics

2001

Seattle University School of Law

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Full-Text Articles in Law

Maximum Vertical Price Fixing From Albrecht Through Brunswick To Khan: An Antitrust Odyssey, James M. Fesmire Jan 2001

Maximum Vertical Price Fixing From Albrecht Through Brunswick To Khan: An Antitrust Odyssey, James M. Fesmire

Seattle University Law Review

The article attempts to sort out some of this confusion caused by the legal journey from Albrecht to Khan by portraying that long road as a successful example of the antitrust injury doctrine's ability to bring substantive antitrust law into compliance with the goals of antitrust. First, the article examines how the existence of successive monopoly provides an incentive for maximum vertical price fixing and how maximum vertical price fixing leads to an increase in consumer welfare. Second, it examines manufacturer alternatives to vertical price restraints, finding them less attractive in terms of social welfare. Third, the article analyzes other …