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http://ssrn.com/abstract=1434406
 
 

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An Evidence-Based Approach to Exclusive Dealing and Loyalty Discounts


Joshua D. Wright


Federal Trade Commission; George Mason University School of Law

July 15, 2009

Global Competition Policy, No. 1, July 2009
George Mason Law & Economics Research Paper No. 09-32

Abstract:     
At the recent Section 2 hearings focused on the antitrust analysis of exclusive dealing contracts, a sensible consensus view emerged that a necessary condition for anticompetitive harm in an exclusive dealing or de facto exclusive contract is that the contract deprives rivals of the opportunity to compete. These contracts, including market-share discounts and “loyalty discounts,” can harm competition when they deprive rivals of an entrenched firm from accessing distribution sufficient to achieve a minimum efficient scale. The recently-withdrawn Section 2 Report reflects this consensus. This article discusses the strengths and weaknesses of the Section 2 Report approach to exclusive dealing and loyalty discounts.

Number of Pages in PDF File: 7

Keywords: antitrust, consumer, David Evans, entrant, entry, exclusion, free ride, Heide, monopolist, predation, retailers

JEL Classification: K21, L41, L42, L44

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Date posted: July 18, 2009  

Suggested Citation

Wright, Joshua D., An Evidence-Based Approach to Exclusive Dealing and Loyalty Discounts (July 15, 2009). Global Competition Policy, No. 1, July 2009; George Mason Law & Economics Research Paper No. 09-32. Available at SSRN: http://ssrn.com/abstract=1434406

Contact Information

Joshua D. Wright (Contact Author)
Federal Trade Commission ( email )
601 New Jersey Ave., NW
Washington, DC 20580
United States
George Mason University School of Law ( email )
3301 Fairfax Drive
Arlington, VA 22201
United States
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