The demand‐boost theory of exclusive dealing.

This article unifies various approaches to the analysis of exclusive dealing that so far have been regarded as distinct. The common element of these approaches is that firms depart from efficient pricing, raising marginal prices above marginal costs. We show that with distorted prices, exclusive dea...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 51; no. 3; pp. 713 - 739
Autores principales: Calzolari, Giacomo, Denicolò, Vincenzo, Zanchettin, Piercarlo
Formato: Artículo
Publicado: Wiley-Blackwell Sep2020
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: The demand‐boost theory of exclusive dealing.
      aug:
        au:
          Calzolari, Giacomo
          Denicolò, Vincenzo
          Zanchettin, Piercarlo
        affil:
          European University Institute
          CEPR, Center for Economic and Policy Research
          University of Bologna
          CEPR
          University of Leicester
      su:
        Price increases
        Marginal pricing
        Antitrust law
        Exclusive contracts
        Direct costing
      sug:
        subj:
          Price increases
          Marginal pricing
          Antitrust law
          Exclusive contracts
          Direct costing
      ab: This article unifies various approaches to the analysis of exclusive dealing that so far have been regarded as distinct. The common element of these approaches is that firms depart from efficient pricing, raising marginal prices above marginal costs. We show that with distorted prices, exclusive dealing can be directly profitable and anticompetitive provided that the dominant firm enjoys a competitive advantage over rivals. The dominant firm gains directly, rather than in the future, or in adjacent markets, thanks to the boost in demand it enjoys when buyers sign exclusive contracts. We discuss the implication of the theory for antitrust policy.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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