Resource title

Exclusive Dealing and Common Agency in International Markets

Resource image

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Resource description

This paper investigates the contractual choice between exclusive dealing and common agency in a simple international oligopoly model where products are sold through intermediaries. We find that when trade barriers are high domestic firms tend to adopt exclusive dealing contracts, whereas trade liberalization may lead firms to choose common agency. Social welfare can be raised by prohibiting exclusive dealing (common agency) when trade barriers are high (low) and products are close substitutes.

Resource author

Horst Raff, Nicolas Schmitt

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/21985

Resource license

Adapt according to the presented license agreement and reference the original author.