Exclusive Contracts: Theory and Practice

Sector: Abuse of dominance | Competition Economics | Competition, Regulation and Business
Published: May, 2008
Document type: LE publication (working papers and economic briefs) 
Tagged: 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.