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.
|Date of creation:||Mar 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Hongo 7-3-1, Bunkyo-ku, Tokyo 113-0033|
Web page: http://www.cirje.e.u-tokyo.ac.jp/index.html
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.:
- 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.
- 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).
- Julian Wright, 2009. "Exclusive Dealing and Entry, When Buyers Compete: Comment," American Economic Review, American Economic Association, vol. 99(3), pages 1070-81, June.
- 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.
- Michael D. Whinston & Ilya R. Segal, 2000. "Naked Exclusion: Comment," American Economic Review, American Economic Association, vol. 90(1), pages 296-309, March.
- 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 & 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.
When requesting a correction, please mention this item's handle: RePEc:tky:fseres:2011cf789. 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: (CIRJE administrative office)
If references are entirely missing, you can add them using this form.