Peitz, Martin; Garella, Paolo G. - Instituto Valenciano de Investigaciones Económicas (IVIE) - 1999
Firms willing to enter a market with a new product often face the problem that the market does notknow its quality. Selling through a retailer might avoid excessive entry costs by renting thereputation of an incumbent. The incumbent can apply excusive dealing clauses to his retailer. Weshow that...