Exclusive dealing with imperfect downstream competition

摘要: The existing literature on exclusive dealing is extended to take into account that buyers signing deals are typically competing firms differentiated from the perspective of their customers. We show, provided such downstream not too or upstream can compete in two-part tariffs, forecloses entry a more efficient rival. An established firm and raise joint profit by protect industry competition. Naked exclusion arises despite Chicago School logic only sign contracts make themselves (jointly) better off.