THE competitive implications of manufacturer leasing have long been an important subject of concern in antitrust policy. For example, the 1956 consent decree settlement of the Justice Department suit against IBM centered on alleged anticompetitive practices relating to IBM's lease-only marketing strategy. Specifically, the 1956 decree focused on the duration of lease agreements, service and equipment lease-sell price differentials, and resale market control implications of leasing practices (see [61). However, despite an obvious relevance for antitrust policy, manufacturer (or captive subsidiary) leasing has received only modest attention in the literature.