Exclusive Dealing and Entry

摘要: This paper examines the use of exclusive dealing agreements to prevent entry rival firms. An agreement is a contract between buyer and seller where commits buy good exclusively from seller. One main concern literature explain how an incumbent able persuade buyers sign that deters more efficient We propose new explanation when are downstream firms both face threat entry. In this case, upstream seller, by decreasing market power firms, can make in attractive. lead further increase competition faced Since part bigger surplus created now captured entrant does not necessarily benefit