Exclusive Contracts: Theory and Practice

abuse-of-dominance||27competition-regulation-and-business||0competition-economics||116
Practice area: Abuse of dominance | Competition & Antitrust | Competition Economics
Client: LE Working Paper
Published: May, 2008
Keywords: qualitative analysis

Exclusive contracts between two parties may be of concern for competition policy as they can be used to restrict the extent of competition in markets. In this note we briefly review the economic literature on the various effects of exclusive contracts and also illustrate with a real-world example how the relevant theory can be applied in practice to assess such contracts from a competition perspective.