IDEAS home Printed from https://ideas.repec.org/a/bpj/jioedu/v1y2006i1n2.html
   My bibliography  Save this article

Vertical Restraints Fundamentals for MBAs

Author

Listed:
  • Lafontaine Francine

Abstract

This lecture on vertical restraint is a transcript of a second-year MBA class at the Stephen M. Ross School of Business, University of Michigan. At various points, student comments and comments by Valerie Suslow, the co-teacher of this course, appear. Accompanying this lecture are the PowerPoint slides and a few film clips from the lecture.The lecture begins with a discussion of vertical boundaries of the firm, and reasons why firms might want to vertically integrate. The bulk of the lecture, however, focuses on vertical restraints. After defining the different types of restraints found in manufacturer retailer contracts, the lecture covers the potential reasons - both efficiency and anti-competitive arguments - why these restraints are used. Finally, the lecture provides a short discussion of public policy towards these restraints, including their treatment under antitrust and various conflicting industry laws. This last section also contains a few examples of recent cases.

Suggested Citation

  • Lafontaine Francine, 2006. "Vertical Restraints Fundamentals for MBAs," Journal of Industrial Organization Education, De Gruyter, vol. 1(1), pages 1-30, December.
    • Handle: RePEc:bpj:jioedu:v:1:y:2006:i:1:n:2
    DOI: 10.2202/1935-5041.1001
    as

    Download full text from publisher

    File URL: https://doi.org/10.2202/1935-5041.1001
    Download Restriction: no
    File URL: https://libkey.io/10.2202/1935-5041.1001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Blair,Roger D. & Lafontaine,Francine, 2011. "The Economics of Franchising," Cambridge Books, Cambridge University Press, number 9780521775892, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Siyu Ma & Yair Tauman, 2021. "Licensing of a New Product Innovation with Risk Averse Agents," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 59(1), pages 79-102, August.
    2. González-Díaz, Manuel & Montoro-Sánchez, Ángeles, 2011. "Some lessons from incentive theory: Promoting quality in bus transport," Transport Policy, Elsevier, vol. 18(2), pages 299-306, March.
    3. repec:hal:spmain:info:hdl:2441/26s2fhqla9901btt78qnrel14d is not listed on IDEAS
    4. James G. Combs & David J. Ketchen Jr & Jeremy C. Short, 2011. "Franchising Research: Major Milestones, New Directions, and its Future within Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 35(3), pages 413-425, May.
    5. Cintya Lanchimba & Josef Windsperger & Muriel Fadairo, 2018. "Entrepreneurial orientation, risk and incentives: the case of franchising," Small Business Economics, Springer, vol. 50(1), pages 163-180, January.
    6. Jaimovich, Nir, 2007. "Firm dynamics and markup variations: Implications for sunspot equilibria and endogenous economic fluctuations," Journal of Economic Theory, Elsevier, vol. 137(1), pages 300-325, November.
    7. Muriel Fadairo & Cyntia Lanchimba & Miguel Yangari, 2016. "Optimal Monetary Provisions and Risk Aversion in Plural Form Franchise Network. A Model of Incentives with Heterogeneous Agents," Working Papers 1602, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    8. Roland E. Kidwell & Arne Nygaard, 2011. "A Strategic Deviance Perspective on the Franchise Form of Organizing," Entrepreneurship Theory and Practice, , vol. 35(3), pages 467-482, May.
    9. Rodolfo Leandro Faria Olivo & Paulo Tromboni Souza Nascimento & George André Willrich Sales & Fabiana Lopes Silva, 2020. "The Brazilian Franchising Puzzle: What Explains Network Quality, Growth and Franchisees’ Satisfaction," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(1), pages 79-93, June.
    10. Kyung-A Sun & Seoki Lee, 2024. "How do strategic pricing approaches influence franchise fee decisions?," Tourism Economics, , vol. 30(6), pages 1508-1530, September.
    11. Andreas Roider, 2012. "The Effect of Contract Regulation on Franchising," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 168(1), pages 58-61, March.
    12. Nicola Gennaioli & Giacomo A. M. Ponzetto, 2015. "Optimally vague contracts and the law," Economics Working Papers 1410, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 2017.
    13. Vivian Zheng, Xu & Jenny Ji, Li & Su, Chenting, 2020. "Mitigating the Negative Effects of Regional Clustering in Franchising: The Roles of Governance Mechanisms," Journal of Retailing, Elsevier, vol. 96(3), pages 434-444.
    14. Muriel Fadairo & Cintya Lanchimba Lopez, 2012. "Performance in distribution systems : What is the influence of the upstream firm’s organizational choices ?," Working Papers 1224, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    15. Hendrikse, George & Jiang, Tao, 2011. "An Incomplete Contracting Model of Dual Distribution in Franchising," Journal of Retailing, Elsevier, vol. 87(3), pages 332-344.
    16. Aleksandar Erceg & Vera Boškovska, 2020. "Franchising In Macedonia – Opportunities And Threats," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 11(2), pages 171-182.
    17. Freiwald, Nisa E. & Juranek, Steffen & Walz, Uwe, 2020. "On the economic geography of dual distribution — The case of McDonald’s in Germany," Economics Letters, Elsevier, vol. 191(C).
    18. Limin Fang, 2022. "The Effects of Online Review Platforms on Restaurant Revenue, Consumer Learning, and Welfare," Management Science, INFORMS, vol. 68(11), pages 8116-8143, November.
    19. Ying Fan & Kai-Uwe Kühn & Francine Lafontaine, 2017. "Financial Constraints and Moral Hazard: The Case of Franchising," Journal of Political Economy, University of Chicago Press, vol. 125(6), pages 2082-2125.
    20. Kehinde Ogunsola-Saliu & Abdulaziz Alotaibi, 2025. "Critical Circumstances Influencing Franchisees’ Business Performance: A Review of the Saudi Arabian Franchise System," Businesses, MDPI, vol. 5(3), pages 1-27, August.
    21. Délila Allam, 2008. "Les raisons d'être de la franchise dans les transactions de services aux entreprises," Post-Print halshs-00643798, HAL.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:jioedu:v:1:y:2006:i:1:n:2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyterbrill.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.