Journal article

Exclusive dealing and business efficiency: Evidence from industry practice

JB Heide, S Dutta, M Bergen

The Journal of Law and Economics | Published : 1998


Exclusive dealing has been the subject of intense public policy debate. A central issue in this debate has been the relationship between exclusive dealing and business efficiency. Despite its importance, there has been a general lack of empirical evidence on business efficiency arguments. The existing evidence on exclusive dealing is limited almost entirely to legal case studies involving firms whose distribution practices have been challenged under antitrust law. In this article we use a new source of microlevel data to study the use of exclusive dealing in industrial markets, gathered through a survey of managers who were responsible for making the distribution decisions in their firms. Ou..

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