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Homework answers / question archive / A manufacturer uses vertical restraints in its contract with its dealer network to encourage dealers to advertise locally
A manufacturer uses vertical restraints in its contract with its dealer network to encourage dealers to advertise locally.
Under what conditions are such vertical restraints socially desirable?
Vertical restraint is an agreement made between manufacturer and dealer to maintain healthy competition and term the guidelines of the business activities between them.
Conditions under which vertical restraints are socially desirable: