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Title: Exclusive contracts and market dominance
Authors: Calzolari, G.
Denicolo, Vicenzo
First Published: Nov-2015
Publisher: American Economic Association
Citation: American Economic Review 105(11): 3321-51.
Abstract: We propose a new theory of exclusive dealing. The theory is based on the assumption that a dominant firm has a competitive advantage over its rivals, and that the buyers’ willingness to pay for the product is private information. In this setting, the dominant firm can impose contractual restrictions on buyers without necessarily compensating them, implying that exclusive dealing contracts can be both profitable and anticompetitive. We discuss the general implications of the theory for competition policy and illustrate by examples its applicability to antitrust cases
DOI Link: 10.1257/aer.20131664
ISSN: 0002-8282
Version: Post-print
Status: Peer-reviewed
Type: Journal Article
Rights: Archived with reference to SHERPA/RoMEO and publisher website. Copyright © 2014 AEA Permission to make digital or hard copies of part or all of American Economic Association publications for personal or classroom use is granted without fee provided that copies are not distributed for profit or direct commercial advantage and that copies show this notice on the first page or initial screen of a display along with the full citation, including the name of the author. Copyrights for components of this work owned by others than AEA must be honored. Abstracting with credit is permitted. The author has the right to republish, post on servers, redistribute to lists and use any component of this work in other works. For others to do so requires prior specific permission and/or a fee. Permissions may be requested from the American Economic Association Administrative Office. Permissions may be requested from the American Economic Association Administrative Office.
Description: JEL: D42 , D82 , L42
Appears in Collections:Published Articles, Dept. of Economics

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