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How the Chicago School Overshot the MarkThe Effect of Conservative Economic Analysis on U.S. Antitrust$
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Robert Pitofsky

Print publication date: 2008

Print ISBN-13: 9780195372823

Published to Oxford Scholarship Online: January 2009

DOI: 10.1093/acprof:oso/9780195372823.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2019. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 15 November 2019

The Sylvania Free Rider Justification for Downstream-Power Vertical Restraints: Truth or Invitation for Pretext?

The Sylvania Free Rider Justification for Downstream-Power Vertical Restraints: Truth or Invitation for Pretext?

Chapter:
(p.181) The Sylvania Free Rider Justification for Downstream-Power Vertical Restraints: Truth or Invitation for Pretext?
Source:
How the Chicago School Overshot the Mark
Author(s):

Warren S. Grimes

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195372823.003.0013

This paper argues that free riding is a pretext. It offers a detailed analysis of fact and law in Business Electronics v. Sharp Electronics, a Supreme Court decision in which Justice Scalia ignored record facts and a jury finding to justify a cutoff of a discounting dealer. Although there was virtually no evidence of free riding by the discounter, Scalia rated the defense as “holy writ,” not as a concept to be measured against the evidence.

Keywords:   free riding, Supreme Court, Justice Scalia, efficiency, competition, vertical restraints

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