Vertical Restraints

The Chicago School taught that vertical restraints are almost always efficient, in the absence of government–created barriers, and that they should be challenged, if at all, under a defendant-biased Rule of Reason. AAI believes the story is often more complicated and that vertical restraints can often have collusive, exclusionary, and other anticompetitive effects. Our growing understanding of strategic behavior and behavioral economics must be applied to understand whether a particular vertical restraint (such as RPM after the Leegin case) should be subject to a rebuttable presumption of illegality.

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