Assessing the Antitrust Liability of Vertical Restraints
18 Oct 2023
12:30 -14:00
Times are shown in local time.
Open to: Members of University of Cambridge
Room W2.02 (Cambridge Judge Business School)
Trumpington St
Cambridge
CB2 1AG
United Kingdom
Join our Marketing seminar
Speaker: Professor Anthony Dukes, University of Southern California
About the seminar topic
This research assesses the antitrust liability for marketing managers employing vertical restraints in channels of distribution. We consider five vertical restraints: Min RPM, Max RPM, Primary-Line and Secondary-Line Price Discrimination (Robinson-Patman), and Non-Price (Territorial) Restraints. Using data from cases decided in US Federal courts since 1980, we empirically demonstrate that, over this time, two of the restraints have become significantly less likely to be subject to litigation.
For the other three restraints, our analysis indicates a more judicious interpretation by the courts. Using the theory of case selection, we posit that five landmark rulings over the past 40 years have established a legal regime that gives marketers more flexibility in implementing efficient, pro-consumer practices yet still protects the market against anticompetitive conduct. We draw lessons for marketers who operate in marketing channels through a detailed analysis of individual cases.
For managers assessing the legal risk associated with vertical restraints, we conclude that they be guided by the principle of customer value creation. Implications for the EU/UK will be discussed.
Speaker bio
Anthony Dukes (University of Southern California) studies retailing and e-commerce platforms with particular attention to pricing, marketing, law and antitrust. Professor Dukes’ research appears in leading academic journals such as Journal of Marketing Research, Management Science, and Marketing Science.
He teaches graduate classes in pricing and in marketing analytics. He is Co-Director of the Initiative on Digital Competition and is senior editor at the journal Marketing Science.
Register
If you would like to register, or know more about this event, please email Luke Slater.