Discuss about the freeriding on the part of distributors

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Reference no: EM131878142

Oil companies do not allow dealers to buy gas from distributors. Dealers must buy gas from the central oil company.

Dealers often complain that this is unfair. The practice has been the subject of antitrust lawsuit. Oil company executives argue that this policy is important because it limits freeriding on the part of distributors. Explain

Reference no: EM131878142

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Discuss about the freeriding on the part of distributors : Oil companies do not allow dealers to buy gas from distributors. Dealers must buy gas from the central oil company.

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