Document de travail

Secret contracting in multilateral relations

Patrick Rey et Thibaud Vergé

Résumé

We develop a general, tractable framework of multilateral vertical contracting, which places no restriction on tari§s and fully accounts for their impact on downstream competition. Equilibrium tariffs are cost-based and replicate the outcome of a multi-brand oligopoly, a finding in line with the analysis of a recent merger. We provide a micro-foundation for this framework, before analyzing the effect of RPM and price parity provisions, and of resale vs. agency business models. Finally, we extend the framework to endogenize the distribution network; we also consider mergers and show that their impact on the distribution network can dominate price effects

Mots-clés

Bilateral contracting; vertical relationships; agency; resale price maintenance; price parity clauses;

Codes JEL

  • D43: Oligopoly and Other Forms of Market Imperfection
  • K21: Antitrust Law
  • L13: Oligopoly and Other Imperfect Markets
  • L42: Vertical Restraints • Resale Price Maintenance • Quantity Discounts

Référence

Patrick Rey et Thibaud Vergé, « Secret contracting in multilateral relations », TSE Working Paper, n° 16-744, décembre 2016, révision décembre 2020.

Publié dans

TSE Working Paper, n° 16-744, décembre 2016, révision décembre 2020