Practice questions

I haven't sent most of you grades because most of you didn't write enough. Here is one crack at the question:

I would ask what are the effects of banning territories and having territories replaced by RPM.

First move would be to compare whether competing retailers exhaust rents under each alternative and why the two cases are different. Which leads to greater service competition and why?

Next move would be to think through double marginalization in each case. Ideally the upstream monopolist wants to control price at the downstream level, but are there cases when controlling quality, or territories, is an acceptable or even preferable substitute.

I'd also work through cases where the vertical restriction is preferred by the upstream supplier only, the downstream seller only, or both. In which of these scenarios would the price restriction and the territory restriction make a difference?

When does it matter that a territory restriction is much easier to enforce than a price restriction?

That would get me going and constitute at least ten paragraphs. The rest would depend on how quickly I could write.