Exclusive Dealing Contracts by Distributors
The existing literature about exclusive dealing contracts has focused on cases where an incumbent manufacturer oÂ¤ers exclusive contracts to deter an entry. In contrast, we consider the case where an incumbent distributor oÂ¤ers exclusive dealing contracts to deter an entry. Exclusive dealing contracts by a distributor are less eÂ¤ective. We will show that the outcome of such contracts is quite diÂ¤erent from the outcomes in the traditional literature. If the number of manufacturers is suÂ¢ ciently high, it is impossible to exclude an eÂ¢ cient entry. Furthermore, if we allow two- part tariÂ¤ contracts, the entrant distributor can enter the market for any number of manufacturers.
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- 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.
- Julian Wright, 2009. "Exclusive Dealing and Entry, When Buyers Compete: Comment," American Economic Review, American Economic Association, vol. 99(3), pages 1070-1081, June.
- Chiara Fumagalli & Massimo Motta, 2006. "Exclusive Dealing and Entry, when Buyers Compete," American Economic Review, American Economic Association, vol. 96(3), pages 785-795, June.
- Fumagalli, Chiara & Motta, Massimo, 2002. "Exclusive Dealing and Entry, when Buyers Compete," CEPR Discussion Papers 3493, C.E.P.R. Discussion Papers.
- Abito, Jose Miguel & Wright, Julian, 2008. "Exclusive dealing with imperfect downstream competition," International Journal of Industrial Organization, Elsevier, vol. 26(1), pages 227-246, January.
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- Roman Inderst & Christian Wey, 2003. "Buyer Power and Supplier Incentives," CIG Working Papers SP II 2003-05, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
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- Michael D. Whinston & Ilya R. Segal, 2000. "Naked Exclusion: Comment," American Economic Review, American Economic Association, vol. 90(1), pages 296-309, March. Full references (including those not matched with items on IDEAS)
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