Contracts to Mitigate Deadweight Loss

A. Raskovick

Working Papers from U.S. Department of Justice - Antitrust Division

Abstract: Exploring a variant of the model of Aghion and Bolton Yields the following results. When an incumbent seller is constrained to price linearly, an exclusionary vertical contract Pareto-dominates spot sales by smoothing prices across states of the world ( potential entrant does or does not appear).

Keywords: CONTRACTS; PRICING; ECONOMIC MODELS (search for similar items in EconPapers)
JEL-codes: D40 D43 (search for similar items in EconPapers)
Pages: 7 pages
Date: 1996
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Persistent link: https://EconPapers.repec.org/RePEc:fth:usjuat:96-09

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