Administrative Regulation versus Private Enforcement – the EU Perspective

Cooke, John D.

doi:10.4337/9781849807036.00014

Cited by 2 publications

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“…As a specific example, in Eastman Kodak versus Fuji, the former, a US photographic film firm, complained that Fuji, its Japanese competitor, had established an exclusive relationship with several Japanese wholesalers (Nagaoka and Goto [1997]). Similar conflicts are also observed in ice cream markets in Europe; for example, Mars, a US firm, complained that Unilever's subsidiaries in Ireland and Germany entered into exclusive agreements with local retailers, becoming a barrier to entry (Motta [2004]; Cooke [2010]; Fumagalli, et al . [2018]).…”

Section: Introductionmentioning

confidence: 92%

Defending Home against Giants: Exclusive Dealing as a Survival Strategy for Local Firms*

Kitamura

Matsushima

Sato

2023

The J Industrial Economics

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We consider exclusive contracts a survival strategy for a local incumbent manufacturer facing a multinational manufacturer's entry. Although both manufacturers prefer to trade with an efficient local distributor, trading with inefficient competitive distributors is acceptable only to the entrant, because of the entrant's efficiency. Hence, such competitive distributors can be an outside option for the entrant. As the entrant becomes efficient, the outside option works effectively, implying that the entry does not considerably benefit the efficient local distributor. Thus, the local manufacturer is more likely to sign an anticompetitive exclusive contract with the efficient distributor as the entrant becomes efficient.

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Section: Introductionmentioning

confidence: 92%

Defending Home against Giants: Exclusive Dealing as a Survival Strategy for Local Firms*

Kitamura

Matsushima

Sato

2023

The J Industrial Economics

View full text Add to dashboard Cite

show abstract

Defending Home Against Giants: Exclusive Dealing as a Survival Strategy for Local Firms

2021

View full text Add to dashboard Cite

We consider exclusive contracts as a survival strategy for a local incumbent manufacturer facing a multinational manufacturer's entry. Although both manufacturers prefer to trade with an efficient local distributor, trading with inefficient competitive distributors is acceptable only to the entrant, owing to the entrant's efficiency. Hence, such competitive distributors can be an outside option for the entrant. As the entrant becomes efficient, the outside option works effectively, implying that the entry does not considerably benefit the efficient local distributor. Thus, the local manufacturer is more likely to sign an exclusive contract with the efficient distributor as the entrant becomes efficient.

show abstract

Administrative Regulation versus Private Enforcement – the EU Perspective

Cited by 2 publications

References 0 publications

Defending Home against Giants: Exclusive Dealing as a Survival Strategy for Local Firms*

Defending Home against Giants: Exclusive Dealing as a Survival Strategy for Local Firms*

Defending Home Against Giants: Exclusive Dealing as a Survival Strategy for Local Firms

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