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Abstract

Former FIC Chairman Tim Muris expresses a widely held view of antitrust policy toward distribution restraints. This view has anchored Supreme Court distribution restraint cases beginning with Continental T. V., Inc. v. GTE Sylvania Inc. in 1977. It was essentially the view held by Professor William Baxter when he assumed leadership of the Antitrust Division in 1981. It is a paradigm shaped by Professor Ward Bowman's critique of leverage theory and by theories about the potential procompetitive effects of distribution restraints, ranging from efficiency...enhancing price discrimination and avoiding free-riding to the theory of the firm and transactional economies.

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