Vertical Price Restrictions On Economic Analysis And Study Of The Anti-trust Regulation

Vertical price fixing is one type of vertical restraints of competition. Its impact on competition plays dual roles. The one hand, it restricts the price competition between the same types of commodities dealers. All sales are unable to make their own pricing of goods. The other hand, it promotes the service competition between the same types of commodities, it can resolve distributive services market failure and avoid the"Free Riding"effectively. So, Economists and jurists have been in puzzling on understanding the nature of the vertical price fixing and holding divergent views for a long time.This paper analyzes the defining and the cause of the vertical price fixing, its impact on economic development and market competition and consumer protection. Compare the regulation model of relevant country's anti-trust law which is more mature. Make relevant recommendations on our forthcoming anti-trust law.The full text is divided into five parts. Its main contents are summarized below:Part one. It is about the over viewing and anglicizing of the reasons for the vertical price fixing. At first, explain the theory of community and the relevant legislation described the concept of vertical price fixing .Then it summed up the concept and elements of the price vertical restraints. Second, I classify the vertical restraints prices according to the different criteria and explain the significance of the classification. Finally, it explains the controversy about the reasons for launching the vertical price fixing between the Chicago School and the Harvard School. Then I sum up the different attitudes the two parties.Part two. It explains that the vertical price fixing is anti-competitive. It explains the impact on competition and social welfare. It restricts the types of commodities with price competition between the same types of commodities dealers. The hazards on the order of competition are obvious. From the point of view of social welfare, it promotes the welfare of producers and sellers. But this is private benefit, not social benefit. Only consumer welfare can represent the social welfare. But the compact on consume welfare is uncertainty, and from a long run, it may do harm to the consume welfare. So, it must be regulated.Part three .The regulations model of anti-trust law. It classifies the model of the country or region whose anti-trust law is more mature. One is the model of"be treated as per se rule mainly and rule of reason auxiliary". The typical country is USA. The other is the model of"prohibiting it but exempting it in special circumstances". The typical country or region is EU and its member states .Then it analysis and evaluate these two models.Part four. It explains the regulation of Chinese legal system and makes some proposals. China doesn't have a special anti-trust law. The existing laws are"Price Law" and "stop price of monopolistic behavior Interim Provisions". There are many inadequacies. The latest "PRC anti-monopoly law" (draft) makes a more comprehensive provisions. But still not perfect。It will make relevant recommendations. I hope it is helpful to the theory and practice.Part five. Conclusion.