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Exclusionary practices in two†sided markets: The effect of radius clauses on competition between shopping centers

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  • Tim Brühn
  • Georg Götz

Abstract

We analyze exclusionary conduct of platforms in 2†sided markets. Motivated by recent antitrust cases, we provide a discussion of the likely positive and normative effects of exclusivity clauses, which prevent tenants from opening outlets in other shopping centers covered by the clause. In a standard 2†sided market model, we show that exclusivity agreements are especially profitable for the incumbent and detrimental to social welfare if competition is intense between the 2 shopping centers. We argue that the focus of courts on market definition is misplaced in markets determined by competitive bottlenecks.

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  • Tim Brühn & Georg Götz, 2018. "Exclusionary practices in two†sided markets: The effect of radius clauses on competition between shopping centers," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 39(5), pages 577-590, July.
    • Handle: RePEc:wly:mgtdec:v:39:y:2018:i:5:p:577-590
    DOI: 10.1002/mde.2928
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