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Antitrust scholars have argued that exclusive contracts have anticompetitive, or at best neutral effects, if no efficiencies are generated. In contrast, this paper shows that exclusive contracts can have procompetitive effects, provided buyers are imperfect downstream competitors and contract...
Persistent link: https://www.econbiz.de/10010427620
While the previous literature on exclusive dealing has been concerned with the question of how exclusive dealing can raise static profits, this paper analyzes the question of how exclusive dealing can be used to predate in a dynamic context. It is shown that exclusive dealing may arise even if...
Persistent link: https://www.econbiz.de/10010427547
This study constructs a model for examining anticompetitive exclusive supply contracts that prevent an upstream supplier from selling input to a new downstream firm. With regard to the technology to transform the input produced by the supplier, as an entrant becomes increasingly efficient, its...
Persistent link: https://www.econbiz.de/10010332502
This article presents a link between tariff rates and industry structure in a dynamic setting. We examine the role of tariffs on final-goods in a firm's decision to integrate and collude in the presence of competitive imports. It is shown that, under some conditions, the upstream firm has an...
Persistent link: https://www.econbiz.de/10010317132
much less than the incumbent's monopoly rents. Thus, in equilibrium, the incumbent can always offer high enough an upfront …
Persistent link: https://www.econbiz.de/10010281376
Under ex ante access regulation entrants often claim that access fees are excessive. I show that this is only the case if further entry is admitted. If the entrant is protected from further entry it would agree with the incumbent upon a strictly positive access fee which may exceed the efficient...
Persistent link: https://www.econbiz.de/10010298680
In contrast to the United States, Germany decided to add margin squeeze as a legal offense to German competition law. In response to this, the problems in the gasoline market have caused major debates. This paper examines the pricing strategies by gasoline retailers and discusses the...
Persistent link: https://www.econbiz.de/10011616221
theoretical roots of these concepts lie in economic theory, these issues have been ignored or considered only scantily in the …
Persistent link: https://www.econbiz.de/10011951850
market failure. We provide an economic analysis of these allegations based upon economic theory as well as publicly available …, enriched with modern economic theory, should suffice to disincentivize the identified anticompetitive conduct for now. …
Persistent link: https://www.econbiz.de/10011492570
monopoly model. Yet, it is worth wondering why the most cited paper on this issue is nowadays Spengler (1950) which contains …
Persistent link: https://www.econbiz.de/10013177565