Editing Anti-competitive practices (section)

== Types ==
Anti-competitive behavior can be grouped into two classifications. Horizontal restraints regard anti-competitive behavior that involves competitors at the same level of the supply chain. These practices include mergers, cartels, collusions, price-fixing, price discrimination and predatory pricing. On the other hand, the second category is [[Vertical restraints#:~:text=Vertical restraints are competition restrictions,in agreements between horizontal competitors.|vertical restraint]] which implements restraints against competitors due to anti-competitive practice between firms at different levels of the supply chain e.g. supplier-distributor relationships. These practices include exclusive dealing, refusal to deal/sell, resale price maintenance and more.

=== Horizontal integration ===
[[Horizontal integration]] can result in [[economies of scale]], [[economies of density]]<ref>{{Cite journal |last=Ralph M |first=Braid |date=2017 |title=Efficiency-enhancing horizontal mergers in spatial competition |journal=Papers in Regional Science|volume=96 |issue=4 |pages=881–895 |doi=10.1111/pirs.12228 |doi-access=free |bibcode=2017PRegS..96..881B }}</ref> and be anti-competitive. When two companies with similar products or product characteristics merge horizontally, there is less competition. Horizontal mergers can also easily lead to a monopoly, reducing consumers' choices and indirectly harming consumers' interests.

=== Vertical integration ===
[[Vertical integration]] can result in [[economies of scope]] and reduce the [[hold-up problem]]<ref>Holmström, B., & Roberts, J. (1998). The Boundaries of the Firm Revisited. ''The Journal of Economic Perspectives, 4''(12), 73-94. {{JSTOR|2646895}}</ref> and be anti-competitive. In absence of [[perfect competition]] [[Chicago school of economics]] argues vertical integration may be pro-competitive by reducing [[double marginalization]].<ref>{{cite journal |title=Antitrust Regulators Release New Vertical Merger Guidelines |journal=CRS Legal Sidebar |date=21 July 2020 |pages=1–3 }}</ref>