The effect of Exclusive Dealing Contracts in Successive Duopoly market

• Main Authors: Yi-Chieh Lee, 李依潔
• Other Authors: Yi-Heng Chen
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/61025967826188801573

碩士 === 淡江大學 === 產業經濟學系碩士班 === 100 === Based on the market structure in Chang（1992）and the derived demand from Cournot competition as in Salinger（1988）, this paper set up a market structure with two upstream firms and two downstream firms to investigate the effect of upstream rival’s choice of exclusive dealing contract on the other upstream firm’s choice of exclusion as well as its profit. We find that if the upstream rival does not imply any kind of exclusive dealing contract, either upward exclusive dealing or downward exclusive dealing, the other upstream firm will choose downward exclusive dealing contract. If the upstream rival uses upward exclusive dealing contract, the other upstream firm is indifferent from having exclusive dealing contract or not. But if the upstream rival firm has downward exclusive dealing contract, the other upstream firm’s choice will depend on the production cost of two downstream firms.