What specific vertical restraint does this behavior capture

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Question: Suppose you run a company that produces three products: computers, televisions, and fridges. Your computers are among the most popular in the world but your televisions and fridges are not. You do not conduct retail sales directly, instead selling wholesale to retailers who then sell to consumers.

a. Suppose that you are contacted by a retailer who wants to sell your computers. You inform them that if they want to buy your computers, then they also have to place at least one order for your televisions as well. What specific vertical restraint does this behavior capture?

b. Suppose instead that you had said that if they want to buy your com- puters, then they also have to buy your televisions AND fridges as well. What specific vertical restraint does this behavior capture?

c. Suppose that you inform the retailer that they are not allowed to sell your televisions at a price below $599. What specific vertical restraint does this behavior capture and why might it actually benefit consumers?

Reference no: EM133345909

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