Naked Exclusion: An Experimental Study of Contracts with Externalities

S-Tier
Journal: American Economic Review
Year: 2009
Volume: 99
Issue: 5
Pages: 1850-77

Authors (2)

Claudia M. Landeo (University of Alberta) Kathryn E. Spier (not in RePEc)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper reports the results of an experiment on exclusive contracts. We replicate the strategic environment described by Rasmusen, Ramseyer, and Wiley (1991) and Segal and Whinston (2000). Our findings are as follows. First, when the buyers can communicate, discrimination raises the likelihood of exclusion. Second, when the incumbent seller is unable to discriminate and must make the same offers to the buyers, communication reduces the likelihood of exclusion. Communication also induces more generous offers when the seller cannot discriminate, and divide-and-conquer offers when the seller can discriminate. Third, when communication is allowed, payoff endogeneity increases the likelihood of exclusion. (JEL C72, C91, D62, D86, K12, K21, L12, L42)

Technical Details

RePEc Handle
repec:aea:aecrev:v:99:y:2009:i:5:p:1850-77
Journal Field
General
Author Count
2
Added to Database
2026-01-25