Ryoko Oki (Graduate School of Economics, University of Tokyo) Noriyuki Yanagawa (Faculty of Economics, University of Tokyo)
Abstract
A seminal work by Fumagalli and Motta (2006) explored that an incumbent manufacturer cannot deter an entry by exclusive dealing contract with distributors. This paper extends the flamework of Fumagalli and Motta and examines a situation in which an incumbent distributor tries to deter an entry of efficient distributor by exclusive dealing contracts with manufacturers. The result of this paper is quite opposite to that of Fumagalli and Motta. The exclusion can be successful. It is an unique equilibrium. In this sence, the effects of exclusive dealing depends on the mareket stiructure. Moreover, we extend our model with an entrant even in upstream. It may decrease the possibility of exclusion but may promote the inefficient vertical relation between the entrants.
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Paper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number
CIRJE-F-626.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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[Downloadable!]
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American Economic Review,
American Economic Association, vol. 81(5), pages 1137-45, December.
[Downloadable!] (restricted)
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