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Beyond Naked Exclusion: Exclusive Dealing after Dentsply

23 Pages Posted: 1 Oct 2013 Last revised: 10 Oct 2013

Robert B. Kulick

NERA Economic Consulting

Date Written: October 2013

Abstract

Although many have come to regard the collection of models that predict anticompetitive consequences from strategic conduct by dominant firms as a “post-Chicago” revolution, the canonical post-Chicago “Naked Exclusion” theory of exclusive dealing maintains the fundamental Chicago structure where exclusive dealing is modeled as a contract driven quid pro quo. However, in the highly influential case U.S. v. Dentsply, the Third Circuit analyzed exclusive dealing in terms of a discriminatory refusal to deal where buyers received no compensation for exclusivity. This article develops a model of exclusive dealing consistent with Dentsply and many other major antitrust cases.

Keywords: Naked Exclusion, Exclusive Dealing, Vertical Restraints, post-Chicago antitrust, Dentsply, Discriminatory Refusal to Deal

JEL Classification: L42, K21

Suggested Citation

Kulick, Robert B., Beyond Naked Exclusion: Exclusive Dealing after Dentsply (October 2013). Available at SSRN: https://ssrn.com/abstract=2333859 or http://dx.doi.org/10.2139/ssrn.2333859

Robert B. Kulick (Contact Author)

NERA Economic Consulting ( email )

1255 23rd Street NW
Suite 600
Washington, DC 20009
United States

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