Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

A Member of the Law Professor Blogs Network

Thursday, November 10, 2011

Naked exclusion in the lab: The case of sequential contracting

Posted by D. Daniel Sokol

Jan Boone Tilburg University, Wieland Muller University of Vienna, Tilburg University, and Sigrid Suetens, Tilburg University explore Naked exclusion in the lab: The case of sequential contracting.

ABSTRACT: In the context of the naked exclusion model of Rasmusen, Ramseyer and Wiley (1991) and Segal and Whinston (2000b), we examine whether sequential contracting is more conducive to exclusion in the lab, and whether it leads to lower exclusion costs for the incumbent, than simultaneous contracting. We find that an incumbent who proposes exclusive contracts to buyers sequentially, is better able to deter entry than an incumbent who proposes contracts simultaneously. In contrast to theory, this comes at a substantial cost for the incumbent.

http://lawprofessors.typepad.com/antitrustprof_blog/2011/11/naked-exclusion-in-the-lab-the-case-of-sequential-contracting.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef015392147694970b

Listed below are links to weblogs that reference Naked exclusion in the lab: The case of sequential contracting:

Comments

Post a comment