Antitrust law is intended to protect consumer welfare and foster competition. At first glance, however, it is often unclear whether certain business practices have positive or detrimental effects. Some activities that appear anticompetitive can actually prove beneficial to consumers. In...

In The Antitrust Paradox, Robert Bork discusses policy responses to naked and ancillary price fixing as well as vertical restraints. Empirical research finds that vertical restraints are generally welfare-enhancing. We examine cartels that used vertical restraints to support collusion. We find...