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Adverse Selection and Partial Exclusive Dealing

35 Pages Posted: 11 Mar 2012  

Justin P. Johnson

Cornell University - Samuel Curtis Johnson Graduate School of Management

Date Written: February 13, 2012

Abstract

I reconcile a disagreement in the literature regarding the impact of downstream price competition on anti-competitive exclusive dealing, and then extend the exclusive dealing literature to accommodate adverse selection. Adverse selection expands the scope of inefficient exclusion, and may also explain policies of partial exclusion, in which an incumbent pro ts by locking up select retailers even though the entrant's product is still competitively supplied in equilibrium. I relate my results to recent antitrust cases against Intel.

Keywords: Exclusive Dealing, Partial Exclusion, Intel

JEL Classification: K21, L4, L11

Suggested Citation

Johnson, Justin P., Adverse Selection and Partial Exclusive Dealing (February 13, 2012). Available at SSRN: https://ssrn.com/abstract=2018933 or http://dx.doi.org/10.2139/ssrn.2018933

Justin Johnson (Contact Author)

Cornell University - Samuel Curtis Johnson Graduate School of Management ( email )

Ithaca, NY 14853
United States

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