Fumagalli, Chiara; Motta, Massimo; Rønde, Thomas - 2009
This paper studies a model where exclusive dealing (ED) can both promote investment and foreclose a more efficient … supplier. While investment promotion is usually regarded as a pro-competitive effect of ED, our paper shows that it may be the … very reason why a contract that forecloses a more efficient supplier is signed. Absent the effect on investment, the …