Fumagalli, Chiara; Motta, Massimo; Roende, Thomas - Centro Studi di Economia e Finanza (CSEF) - 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...