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Exclusive Dealing and the Whiskey Trust, 1890–1895

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  • Troesken, Werner

Abstract

This article uses the history of the Whiskey Trust to explore the competitive effects of vertical restraints such as exclusive dealing. The Whiskey Trust distilled alcoholic spirits and bribed distributors not to carry competing brands of spirits. For the Whiskey Trust, exclusive dealing was an ineffective predatory strategy. Despite the trust's market dominance and manifold predatory strategies, it failed to preempt entry. The trust failed, in part, because its rivals could vertically integrate at low cost. Competition disciplined the trust more effectively than did numerous antitrust suits.

Suggested Citation

  • Troesken, Werner, 1998. "Exclusive Dealing and the Whiskey Trust, 1890–1895," The Journal of Economic History, Cambridge University Press, vol. 58(3), pages 755-778, September.
    • Handle: RePEc:cup:jechis:v:58:y:1998:i:03:p:755-778_02
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    Cited by:

    1. Daniel J. Smith & Macy Scheck, 2023. "Examining the public interest rationale for regulating whiskey with the pure food and drugs act," Public Choice, Springer, vol. 196(1), pages 85-122, July.

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