IDEAS home Printed from https://ideas.repec.org/a/kap/revind/v60y2022i3d10.1007_s11151-021-09841-y.html
   My bibliography  Save this article

The Assessment of Exclusive Contracts: The Competition Case Against Computicket in South Africa

Author

Listed:
  • Liberty Mncube

    (University of Witwatersrand)

  • Giulio Federico

    (European Commission)

  • Massimo Motta

    (ICREA – Universitat Pompeu Fabra)

Abstract

This article reviews an abuse of dominance decision against the main outsourced ticketing firm in South Africa. The decision of the Competition Tribunal in January 2019 was upheld by the Competition Appeal Court in October 2019. The case clearly illustrates an economics approach to evaluating exclusionary conduct. As this article sets out, the market and contractual environment in which Computicket operated corresponded closely to the assumptions of the economic theory of anti-competitive exclusive dealing. These conditions, taken together, imply that Computicket’s exclusive contracts are likely to have led to significant anti-competitive effects in the relevant market.

Suggested Citation

  • Liberty Mncube & Giulio Federico & Massimo Motta, 2022. "The Assessment of Exclusive Contracts: The Competition Case Against Computicket in South Africa," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 60(3), pages 403-429, May.
    • Handle: RePEc:kap:revind:v:60:y:2022:i:3:d:10.1007_s11151-021-09841-y
    DOI: 10.1007/s11151-021-09841-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11151-021-09841-y
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11151-021-09841-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chiara Fumagalli & Massimo Motta & Thomas Rønde, 2012. "Exclusive Dealing: Investment Promotion May Facilitate Inefficient Foreclosure," Journal of Industrial Economics, Wiley Blackwell, vol. 60(4), pages 599-608, December.
    2. Giulio Federico, 2013. "Saa Ii: Abuse Of Dominance In The South African Skies," Journal of Competition Law and Economics, Oxford University Press, vol. 9(3), pages 709-737.
    3. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
    4. Klein, Benjamin, 1988. "Vertical Integration as Organizational Ownership: The Fisher Body-General Motors Relationship Revisited," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 4(1), pages 199-213, Spring.
    5. Michael D. Whinston & Ilya R. Segal, 2000. "Naked Exclusion: Comment," American Economic Review, American Economic Association, vol. 90(1), pages 296-309, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kaplow, Louis & Shapiro, Carl, 2007. "Antitrust," Handbook of Law and Economics, in: A. Mitchell Polinsky & Steven Shavell (ed.), Handbook of Law and Economics, edition 1, volume 2, chapter 15, pages 1073-1225, Elsevier.
    2. Cédric Argenton, 2010. "Exclusive Quality," Journal of Industrial Economics, Wiley Blackwell, vol. 58(3), pages 690-716, September.
    3. Steven Berry & Martin Gaynor & Fiona Scott Morton, 2019. "Do Increasing Markups Matter? Lessons from Empirical Industrial Organization," Journal of Economic Perspectives, American Economic Association, vol. 33(3), pages 44-68, Summer.
    4. Karine Fabre & Gwenaëlle Nogatchewsky & Anne Pezet, 2010. "Contribution à une histoire de l’externalisation:le cas Renault (1945-1975)," Revue Finance Contrôle Stratégie, revues.org, vol. 13(2), pages 145-188., June.
    5. Michiel Bijlsma & Viktoria Kocsis & Victoria Shestalova & Gijsbert Zwart, 2008. "Vertical foreclosure: a policy framework," CPB Document 157, CPB Netherlands Bureau for Economic Policy Analysis.
    6. Richard N. Langlois & Nicolai J. Foss, 1999. "Capabilities and Governance: The Rebirth of Production in the Theory of Economic Organization," Kyklos, Wiley Blackwell, vol. 52(2), pages 201-218, May.
    7. Jay Pil Choi & Christodoulos Stefanadis, 2018. "Sequential innovation, naked exclusion, and upfront lump-sum payments," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(4), pages 891-915, June.
    8. Robin S. Lee, 2013. "Vertical Integration and Exclusivity in Platform and Two-Sided Markets," American Economic Review, American Economic Association, vol. 103(7), pages 2960-3000, December.
    9. Dirk Bergemann & Alessandro Bonatti & Tan Gan, 2022. "The economics of social data," RAND Journal of Economics, RAND Corporation, vol. 53(2), pages 263-296, June.
    10. Ralph A. Winter, 2009. "Presidential Address: Antitrust restrictions on single-firm strategies," Canadian Journal of Economics, Canadian Economics Association, vol. 42(4), pages 1207-1239, November.
    11. Marcel Canoy & Patrick Rey & Eric van Damme, 2004. "Dominance and Monopolization," Chapters, in: Manfred Neumann & Jürgen Weigand (ed.), The International Handbook of Competition, chapter 7, Edward Elgar Publishing.
    12. Ke Liu & Xiaoxuan Meng, 2021. "Exclusive dealing when upstream displacement is possible," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 30(4), pages 830-843, November.
    13. Pinar Akman, 2008. "'Consumer' versus 'Customer': the Devil in the Detail," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2008-34, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    14. Chen, Ying & Zápal, Jan, 2024. "Naked exclusion with heterogeneous buyers," International Journal of Industrial Organization, Elsevier, vol. 95(C).
    15. Belleflamme,Paul & Peitz,Martin, 2015. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9781107687899, November.
    16. Christopher T. Conlon & Julie Holland Mortimer, 2021. "Efficiency and Foreclosure Effects of Vertical Rebates: Empirical Evidence," Journal of Political Economy, University of Chicago Press, vol. 129(12), pages 3357-3404.
    17. Antonio Nicita & Massimiliano Vatiero, 2014. "Dixit versus Williamson: the ‘fundamental transformation’ reconsidered," European Journal of Law and Economics, Springer, vol. 37(3), pages 439-453, June.
    18. Kitamura, Hiroshi & Matsushima, Noriaki & Sato, Misato, 2018. "Exclusive contracts with complementary inputs," International Journal of Industrial Organization, Elsevier, vol. 56(C), pages 145-167.
    19. Bogdan Genchev & Julie Holland Mortimer, 2016. "Empirical Evidence on Conditional Pricing Practices," NBER Working Papers 22313, National Bureau of Economic Research, Inc.
    20. Casadesus-Masanell, Ramon & Spulber, Daniel F, 2000. "The Fable of Fisher Body," Journal of Law and Economics, University of Chicago Press, vol. 43(1), pages 67-104, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:revind:v:60:y:2022:i:3:d:10.1007_s11151-021-09841-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.