Selective Contracts, Foreclosure, and the Chicago School View*

摘要: Abstract I examine a mechanism by which exclusive supply contracts may inefficiently deter entry into the market. In model, incumbent supplier selectively offers only to some buyers and convinces them consent guaranteeing low prices. The strengthen monopoly position of allow it extract rents from remaining that were not offered contracts. Aside favorable contract terms, have another reason exclusivity scheme: latter raises input costs rival model has potential applications recent Microsoft antitrust case (1994). define as an agreement under upstream firm becomes downstream firm; is prohibited buying other suppliers.