@article{7c35b2f4818043d3b9c4b0c1198bd4f8,
title = "Exclusive contracts when the incumbent can establish a direct retailer",
abstract = "This paper constructs a model of anticompetitive exclusive dealings with potential downstream competition. Unlike in previous studies, the incumbent can establish a direct retailer with some fixed payment and can offer an exclusive contract to a downstream buyer twice. We show that the existence of these two options helps the incumbent deter socially efficient entry and earn almost monopoly profits even in the absence of scale economies and downstream competition.",
keywords = "Direct retailers, Exclusive dealing, Two offers, Vertical relation",
author = "Hiroshi Kitamura and Misato Sato and Koki Arai",
note = "Funding Information: An earlier version of this paper was circulated under the title “Exclusive Contracts with Options.” We thank Noriyuki Doi, Makoto Hanazono, Takeshi Ikeda, Akira Ishii, Taisuke Matsubae, Noriaki Matsushima, June Nakabayashi, Sobei H. Oda, Tadashi Sekiguchi, Shiro Takeda, Takashi Yanagawa, the conference participants at the Japanese Economic Association and the Japanese Association for Applied Economics, and the seminar participants at the Kyoto Sangyo University for helpful discussions and comments. We also thank the editor—Giacomo G. Corneo—and an anonymous referee for their very helpful comments and suggestions that significantly improved this paper. The second author gratefully acknowledges the financial support from JSPS Grant-in-Aid for Research Activity Start-up No. 22830075, for Young Scientists (B) No. 24730220, and for Scientific Research (A) No. 22243022 organized by Masaki Nakabayashi. The views expressed in this paper are those of the authors and do not necessarily represent the views of JFTC or any other organization. Publisher Copyright: {\textcopyright} 2013, Springer-Verlag Wien.",
year = "2014",
month = may,
day = "1",
doi = "10.1007/s00712-013-0335-7",
language = "English",
volume = "112",
pages = "47--60",
journal = "Journal of Economics/ Zeitschrift fur Nationalokonomie",
issn = "0931-8658",
publisher = "Springer Wien",
number = "1",
}