"Exclusive Dealing Contracts by Distributors"
The existing literature about exclusive dealing contracts has focused on cases where an incumbent manufacturer o¤ers exclusive contracts to deter an entry. In contrast, we consider the case where an incumbent distributor o¤ers exclusive dealing contracts to deter an entry. Exclusive dealing contracts by a distributor are less e¤ective. We will show that the outcome of such contracts is quite di¤erent from the outcomes in the traditional literature. If the number of manufacturers is su¢ ciently high, it is impossible to exclude an e¢ cient entry. Furthermore, if we allow two- part tari¤ contracts, the entrant distributor can enter the market for any number of manufacturers.
Year of publication: |
2011-03
|
---|---|
Authors: | Oki, Ryoko ; Yanagawa, Noriyuki |
Institutions: | Center for International Research on the Japanese Economy (CIRJE), Faculty of Economics |
Saved in:
freely available
Saved in favorites
Similar items by person
-
"Exclusive Dealing and the Market Power of Buyers"
Oki, Ryoko, (2010)
-
"Exclusive Dealing Contract and Inefficient Entry Threat"
Yanagawa, Noriyuki, (2008)
-
"A Case Study about Corporate Revival Process: Nitto Kougyou"(in Japanese)
Yanagawa, Noriyuki, (2004)
- More ...