Beyond Naked Exclusion: Exclusive Dealing after Dentsply
Robert B. Kulick
University of Maryland, College Park
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.
Number of Pages in PDF File: 23
Keywords: Naked Exclusion, Exclusive Dealing, Vertical Restraints, post-Chicago antitrust, Dentsply, Discriminatory Refusal to Deal
JEL Classification: L42, K21
Date posted: October 1, 2013 ; Last revised: October 10, 2013