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We report the results of experiments designed to test recent theories of vertical foreclosure. Consistent with the … theory, the upstream firm has more difficulty commiting to supply the monopoly quantity in treatments with non … underemphasized in the recent foreclosure literature. Motivated by a number of observations that are difficult to reconcile with …
Persistent link: https://www.econbiz.de/10014146973
We report the results of experiments designed to test recent theories of vertical foreclosure. Consistent with the … theory, vertical integration improves the upstream firm's ability to commit to restricting output to the monopoly level, as … underemphasized in the recent foreclosure literature. Motivated by some observations that are difficult to reconcile with existing …
Persistent link: https://www.econbiz.de/10014126754
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This paper presents an experimental study of exclusive dealing with an active entrant seller. We compare three treatments, which differ in terms of the sellers' moves, and find significant differences to the incumbent seller's exclusive offer and exclusion rates. Compared to the case where the...
Persistent link: https://www.econbiz.de/10012930481
When an upstream monopolist supplies several competing downstreamfirms, it may fail to monopolize the market because it is unable to commit not to behave opportunistically. We build on previous experimental studies of this well-known commitment problem by introducing communication. Allowing the...
Persistent link: https://www.econbiz.de/10011518962
foreclosure in laboratory experiments. In one-shot interactions, upstream firms can choose to build a reputation by revealing …
Persistent link: https://www.econbiz.de/10011555141
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