Exclusionary Vertical Restraints and Antitrust: Experimental Law and Economics Contributions
Vertical restraints have been subject of lively policy and academic discussions. Scholars associated with the Chicago School challenged early foreclosure doctrines by arguing that vertical restraints primarily reflected efficiency considerations. More recently, industrial organization economists have used the tools of game theory and information economics to showth at these business practices might actually serve anticompetitive purposes. The influence of the new economic theories on antitrust policies has been limited by the complexity of the models and the scarcity of empirical evidence. Experimental law and economics might advance the knowledge of the factors that affect the anticompetitive effects of vertical restraints. Hence, it might strengthen the contributions of academic work to the design and implementation of antitrust policies. This chapter is intended to contribute to the discussion of the exclusionary effects of vertical restraints, and the role of experimental law and economics in antitrust law. Special attention is devoted to vertical integration, exclusive dealing contracts, and tying and bundling practices. Although the experimental literature on exclusionary vertical restraints is relatively recent, the findings from these studies provide important insights. First, this research indicates that vertical restraints might indeed be used as market foreclosure mechanisms. Second, this work identifies previously non-modeled factors that might influence the effects of these business practices. My analysis underscores the importance of combining experimental and behavioral observation with theoretical modeling.
|Date of creation:||01 Oct 2012|
|Date of revision:|
|Contact details of provider:|| Postal: 8-14 HM Tory, Edmonton, Alberta, T6G 2H4|
Phone: (780) 492-3406
Fax: (780) 492-3300
Web page: http://www.economics.ualberta.ca/
More information through EDIRC
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.:
- Claudia M. Landeo & Kathryn E. Spier, 2012.
"Exclusive Dealing and Market Foreclosure: Further Experimental Results,"
Journal of Institutional and Theoretical Economics (JITE),
Mohr Siebeck, Tübingen, vol. 168(1), pages 150-170, March.
- Landeo, Claudia & Spier, Kathryn, 2012. "Exclusive Dealing and Market Foreclosure: Further Experimental Results," Working Papers 2012-10, University of Alberta, Department of Economics.
- Landeo, Claudia M., 2009. "Cognitive coherence and tort reform," Journal of Economic Psychology, Elsevier, vol. 30(6), pages 898-912, December.
- Claudia M. Landeo & Kathryn E. Spier, 2008.
"Naked Exclusion: An Experimental Study of Contracts with Externalities,"
NBER Working Papers
14115, National Bureau of Economic Research, Inc.
- Claudia M. Landeo & Kathryn E. Spier, 2009. "Naked Exclusion: An Experimental Study of Contracts with Externalities," American Economic Review, American Economic Association, vol. 99(5), pages 1850-77, December.
- Landeo, Claudia M. & Spier, Kathryn E., 2007. "Naked Exclusion: An Experimental Study of Contracts with Externalities," MPRA Paper 9143, University Library of Munich, Germany.
- A. Mitchell Polinsky & Steven Shavell (ed.), 2007. "Handbook of Law and Economics," Handbook of Law and Economics, Elsevier, edition 1, volume 1, number 1.
- Crawford, Vincent, 1998. "A Survey of Experiments on Communication via Cheap Talk," Journal of Economic Theory, Elsevier, vol. 78(2), pages 286-298, February.
- Duffy, John & Feltovich, Nick, 2002. "Do Actions Speak Louder Than Words? An Experimental Comparison of Observation and Cheap Talk," Games and Economic Behavior, Elsevier, vol. 39(1), pages 1-27, April.
- Davis, Douglas D. & Holt, Charles a., 1993. "Experimental economics: Methods, problems and promise," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 8(2), pages 179-212.
- Brooks, Richard & Landeo, Claudia & Spier, Kathryn, 2009.
"Trigger Happy or Gun Shy? Dissolving Common-Value Partnerships with Texas Shootouts,"
2009-1, University of Alberta, Department of Economics, revised 01 Jul 2013.
- Richard R. W. Brooks & Claudia M. Landeo & Kathryn E. Spier, 2010. "Trigger happy or gun shy? Dissolving common-value partnerships with Texas shootouts," RAND Journal of Economics, RAND Corporation, vol. 41(4), pages 649-673.
- A. Mitchell Polinsky & Steven Shavell (ed.), 2007. "Handbook of Law and Economics," Handbook of Law and Economics, Elsevier, edition 1, volume 2, number 2.
- Timothy N. Cason & Tridib Sharma, 2001. "Durable Goods, Coasian Dynamics, and Uncertainty: Theory and Experiments," Journal of Political Economy, University of Chicago Press, vol. 109(6), pages 1311-1354, December.
- Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, March.
- Anil Caliskan & David Porter & Stephen Rassenti & Vernon L. Smith & Bart J. Wilson, 2007. "Exclusionary Bundling and the Effects of a Competitive Fringe," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 163(1), pages 109-132, March.
- Patrick Bolton & Michael D. Whinston, 1993. "Incomplete Contracts, Vertical Integration, and Supply Assurance," Review of Economic Studies, Oxford University Press, vol. 60(1), pages 121-148.
When requesting a correction, please mention this item's handle: RePEc:ris:albaec:2012_024. 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: (Brenda Carrier)
If references are entirely missing, you can add them using this form.