Exclusionary vertical contracts with multiple entrants

Hiroshi Kitamura

International Journal of Industrial Organization, 2010, vol. 28, issue 3, 213-219

Abstract: This paper constructs a model of anticompetitive exclusive dealing in the presence of multiple entrants. Unlike the single-entrant model in previous literature, an entrant competes not only with the incumbent to deal with buyers but also with other entrants. The competition among entrants then serves as a commitment such that low wholesale prices are offered to buyers when they deviate from exclusive contracts. We argue that this commitment effect becomes a barrier to exclusive dealing and that the results differ drastically from the predictions of the single-entrant framework.

Keywords: Vertical; relation; Exclusive; dealing; Multiple; entrants; Antitrust; policy (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (26)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:28:y:2010:i:3:p:213-219

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