Competing buyers, rent extraction and inefficient exclusion

B-Tier
Journal: International Journal of Industrial Organization
Year: 2020
Volume: 68
Issue: C

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

The article illustrates how a seller profitably can prevent entry of a potential competitor, even when entry would increase industry profit. Entry is prevented by offering exclusive contracts to the buyers. The buyers are assumed to be differentiated firms, competing in a downstream market. Exclusion occurs in equilibrium as long as there is some degree of competition among the downstream firms, and even when there are no economies of scale in upstream production.

Technical Details

RePEc Handle
repec:eee:indorg:v:68:y:2020:i:c:s0167718719300840
Journal Field
Industrial Organization
Author Count
1
Added to Database
2026-01-29