Pushkinskaya st. 43. office 10
Rostov-on-Don, Russia
e-mail: info@hjournal.ru 
tel. +7(863) 269-88-14

cubsEN (2)

European methodology of analysis vertical restraints under rule of reason in context of cooperative relation specific investments

European methodology of analysis vertical restraints under rule of reason in context of cooperative relation specific investments

Journal of Institutional studies, , Vol. 7 (no. 3),

The problem of underinvestment in specific assets is a key issue in new institutional economics, especially in case of cooperative relation specific investments. It can be solved due to vertical restraints, as an alternative way of vertical integration to transfer control to partner, who makes relation specific investments. The type of relationspecific investments called «cooperative» investments (or cross investments) was nearly absent in economic analysis up to the very end of the twentieth century despite of the fact that such investments are widespread. It led to the absence of analysis relation specific investments in official regulation documents. At the same time, different types of relation specific investments can be characterized by different degree of riskiness and need special regulations of vertical agreements. In the paper author makes an attempt to analyze the European methodology of assessment vertical restraints under rule of reason focusing on the type of relation specific investments. It makes possible to improve analysis of vertical restraint in Russian antitrust.

Keywords: relation-specific investments; cooperative relation-specific investments; vertical restraints; antitrust; rule of reason; Guidelines on vertical restraints.

  • Agamirova M. E. and Dzagurova N. B. (2014а). Incentives for cooperative specific investments: from antitrust cases to theoretical approaches. Economic Policy, no. 4, pp. 79-97. (In Russian).
  • Agamirova M. E. and Dzagurova N. B. (2014b). The classification of vertical restraints. Modern Competition, no. 6(48), pp. 20-30. (In Russian).
  • Avdasheva S. B., Shastitko A. E. and Kryuchkova P. V. (2007). Dominance on the Market for Legal Reference Systems: An Economic Analysis. Voprosy Ekonomiki, no. 11, pp. 104-119. (In Russian).
  • Che Y. -K. and Hausch D. B. (1999). Cooperative Investments and the Value of Contracting. American Economic Review, no. 89 (1), pp. 125-147.
  • Commission Regulation (EU) No 330/2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices, OJ L 102, 4/23/2010.
  • Dzagurova N. B. (2012). Specific Investments Protection through Lens of Negative Impact of Cooperative Investments on the Value of Investor’s Outside Options. Russian Management Journal, no. 4, pp. 31-48. (In Russian).
  • Dzagurova N. B. and Agamirova M. E. (2014). Criteria for selfish and cooperative relation-specific investments distinction. Journal of Institutional Studies, vol. 6, no. 4, pp. 65-76. (In Russian).
  • Dzagurova N. B. and Avdasheva S. B. (2010). Modern theoretical approaches to the analysis of Exclusive Agreements and Legislative Norms of their Regulation. Public Administration Issues, no. 1, pp. 69-88. (In Russian).
  • Guidelines on Vertical Restraints. (http://ec.europa.eu/competition/antitrust/legislation/guidelines_vertical_en.pdf - Access Date: 06.08.2015).
  • Hart O. (1995) Firms, Contracts and Financial Structure. Oxford University Press.
  • Mathewson F. and Winter R. (1998). The Law and Economics of Resale Price Maintenance. Review of Industrial Organization, no. 13, pp. 57-84.
  • Menard C. (2006). Hybrid organization of production and distribution. Revista de Analisis Economico, no. 21 (2), pp. 25-41.
  • Rey P. and Tirole J. (1986). The Logic of Vertical Restraints. American Economic Review, no. 76 (5), pp. 921-939.
  • Williamson O. (1985). The Economic Institutions of Capitalism: firms, markets, relational contracting. New York, The Free Press-Macmillan.
  • Williamson O. (1991). Comparative Economic Organization: The Analysis of Discrete Structural Alternatives. Administrative Science Quarterly, no. 36 (2), pp. 269-296.
Publisher: Ltd. "Humanitarian perspectives"
Founder: Ltd. "Humanitarian perspectives"
Online ISSN: 2412-6039
ISSN: 2076-6297