Calzolari, Giacomo; Denicolò, Vincenzo - C.E.P.R. Discussion Papers - 2009
We study the effects of exclusive contracts and market-share discounts (i.e., discounts conditioned on the share a firm … compete in non-linear prices. We show that exclusive contracts intensify the competition among the firms, increasing consumer … surplus, improving efficiency, and reducing profits. Firms would gain if these contracts were prohibited, but are caught in a …