Naked exclusion with minimum-share requirements

• 成果类型: Article
• 署名作者: Chen, Zhijun; Shaffer, Greg
• 署名单位: University of Auckland; University of Rochester; University of East Anglia
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/1756-2171.12042
• 发表日期: 2014
• 页码: 64-91
• 关键词: Contracts; buyers; entry

摘要

We consider a class of contracts in which buyers commit to giving a seller some minimum share of their total purchases. We show that such contracts can be used by an incumbent seller to reduce the probability of entry by a rival seller when the incumbent can commit to its selling price as part of the contract. We further show that such contracts can be profitable for the incumbent even when exclusive dealing would not be, and even when buyers can coordinate their accept-or-reject decisions. The average price paid by the buyers will be higher and welfare will be lower whether or not the incumbent's exclusionary conduct turns out to be successful in preventing entry.