We consider a seller s ability to deter potential entrants by offering exclusive contracts to its downstream buyers. Rasmusen, Ramseyer, and Wiley (1991) showed that this can be a pro fitable strategy if there is a coordination failure on the part of the buyers. Segal and Whinston (2000) showed...

Subsequent experimental studies of the market entry game and his associates, which systematically manipulated the information structure of the game, compared behavior in the domains of gains and losses, or introduced private information and asymmetry between players, have shown that this magic...