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Gabital 87: Vertical restraints ***Vertical restraints***…

Gabital 87: Vertical restraints

***Vertical restraints*** *are agreements between firms operating at different stages of the same production or supply chains(manufacturers, wholesalers, and retailers, for example). They commonly take the form of obligations or restrictions - like fixed or minimum resale price set by manufacturer, supply exclusivity agreements, territorial restrictions on sales etc.*
*They can increase efficiency and provide other conditional positives on the agreed parties, but - without proper control - can often result in limiting competition.*
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