Naked exclusion in the lab: The case of sequential contracting

Research output: Contribution to journalArticleScientificpeer-review

7 Citations (Scopus)


In the context of the naked exclusion model of Rasmusen, Ramseyer
and Wiley [1991] and Segal and Whinston [2000b], we examine whether
sequential contracting is more conducive to exclusion in the lab, and
whether it is cheaper for the incumbent than simultaneous contracting.
We find that an incumbent who proposes contracts to buyers sequentially,
excludes significantly more often than an incumbent who proposes
contracts simultaneously. In contrast to theory, this comes at a
substantial cost for the incumbent. Accounting for the observation that
buyers are more likely to accept an exclusive contract the higher the
payment, substantially improves the fit between theoretical predictions
and observed behavior.
Original languageEnglish
Pages (from-to)137-166
JournalJournal of Industrial Economics
Issue number1
Publication statusPublished - 2014


Dive into the research topics of 'Naked exclusion in the lab: The case of sequential contracting'. Together they form a unique fingerprint.

Cite this