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Takeshi Ikeda and Daisuke Nikae
''Exclusive territories in the presence of upstream competition''
( 2006, Vol. 4 No.26 )
This paper investigates the effects of exclusive territories in the presence of upstream competition. We consider the vertical dealings among two upstream firms and four downstream firms and find that exclusive territories may be more beneficial for consumers and more harmful for producers than Cournot competition without exclusive territories. Moreover, social welfare is enhanced by imposing exclusive territories when the transport cost is not too low.
Keywords: Exclusive territory
JEL: D4 - Market Structure and Pricing: General
L4 - Antitrust Issues and Policies: General
Manuscript Received : Aug 03 2006 Manuscript Accepted : Aug 07 2006

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