Exclusive Contracts and Bargaining Power

Hiroshi Kitamura, Noriaki Matsushima and Misato Sato

ISER Discussion Paper from Institute of Social and Economic Research, The University of Osaka

Abstract: This study constructs a simplest model to examine anticompetitive exclusive contracts that prevent a downstream buyer from buying input from a new upstream supplier. Incorporating Nash bargaining into the standard one-buyer-one-supplier framework in the Chicago School critique, we show a possibility that an inefficient incumbent supplier can deter a socially efficient entry through exclusive contracts.

Date: 2016-09
New Economics Papers: this item is included in nep-com, nep-cta and nep-mic
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https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2016/DP0978.pdf

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Journal Article: Exclusive contracts and bargaining power (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:dpr:wpaper:0978

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