Exclusive Dealing and Large Distributors
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.
|Date of creation:||Jul 2009|
|Contact details of provider:|| Postal: Hongo 7-3-1, Bunkyo-ku, Tokyo 113-0033|
Web page: http://www.carf.e.u-tokyo.ac.jp/english/
More information through EDIRC
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.:
- Fumagalli, Chiara & Motta, Massimo & Persson, Lars, 2005.
"Exclusive Dealing, Entry and Mergers,"
CEPR Discussion Papers
4902, C.E.P.R. Discussion Papers.
- Chiara Fumagalli & Massimo Motta & Thomas Roende, 2009. "Exclusive dealing, entry, and mergers," CSEF Working Papers 225, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Chiara Fumagalli & Massimo Motta & Lars Persson, 2006. "Exclusive dealing, entry, and mergers," CSEF Working Papers 153, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Fumagalli, Chiara & Motta, Massimo, 2002.
"Exclusive Dealing and Entry, when Buyers Compete,"
CEPR Discussion Papers
3493, C.E.P.R. Discussion Papers.
- Chiara Fumagalli & Massimo Motta, 2008.
"Buyers' Miscoordination, Entry and Downstream Competition,"
Royal Economic Society, vol. 118(531), pages 1196-1222, 08.
- Chiara Fumagalli & Massimo Motta, 2006. "Buyers’ miscoordination, entry, and downstream competition," CSEF Working Papers 152, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Michael D. Whinston & Ilya R. Segal, 2000. "Naked Exclusion: Comment," American Economic Review, American Economic Association, vol. 90(1), pages 296-309, March.
When requesting a correction, please mention this item's handle: RePEc:cfi:fseres:cf152. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.