A Study of Exclusionary Coalitions: The Canadian Sugar Coalition, 1888–1889

Abstract

In this paper we examine exclusion accomplished by a coalition of firms—frequently, a coalition of suppliers and customers—that share the benefits of exclusion. As a particular historical example, we study the Canadian sugar industry of the 1880s, which was controlled by a complex coalition of refiners and wholesalers. We assess the incentives and conduct of the parties as revealed in the records of a House of Commons inquiry into anticompetitive practices in the industry. Drawing upon this example, we identify and evaluate several doctrinal approaches to establishing antitrust liability for anticompetitive exclusionary coalitions.