Exclusive contracts with complementary inputs

Are Exclusive Contracts Anticompetitive?

While antitrust law is often hostile to exclusive contracts that say ”you agree not to purchase this product from anyone besides me”, economic theory so far has provided only partial support for such a hostility.1 This paper shows that this hostility can be justified under more general circumstances than has been established so far in the literature: a firm may introduce exclusivity clauses in ...

Exclusive contracts in health insurance

Competition between insurance companies for employees of a firm often increases the prices and reduces the availability of high-quality health plans offered to employees. An insurance company can reduce competition by signing an exclusive contract, which guarantees that the company is the only insurance provider. The study assesses whether exclusive contracts can alleviate the negative conseque...

Exclusive Contracts Between Hospitals and Physicians by

Pricing and Entry Incentives with Exclusive Contracts: Evidence from Smartphones

I study the implications of exclusive contracts for smartphones. Theory models indicate that lower demand elasticities for handsets relative to wireless networks could lead to exclusive contracts maximizing joint profits of the contracting parties. I estimate smartphone and carrier demand on a detailed monthly market-level dataset of US consumer decisions over 2008-2010. Counterfactual simulati...

Robust Incentives and Non-Exclusive Contracts

This paper studies a moral hazard problem in which the agent can borrow on future wages before undertaking a costly e¤ort. The game between the agent and potential lenders is modelled as an in…nite stochastic game with an exogenous stopping probability. It is shown that regardless of the initial wage contract the agent sequentially enters into multiple borrowing agreements which dilute e¤ort in...