Exclusive Dealing and Shanzhai
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| Title | Exclusive Dealing and Shanzhai
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| Author | Zhao Zile, Shen Minghao, Sui Guangjun and Fu Yu |
| Organization | Jinan University; Guangdong University of Foreign Studies |
| Email | tysmh@163.com |
| Key Words | Exclusive Dealing; Entry Barrier; Intellectual Property Right; Shanzhai; Antitrust |
| Abstract | Previous papers argue that exclusive dealing is likely to deter entry. It is shown that, Shanzhai, as a result of the elimination of downstream entry barriers, would destruct upstream monopolization. Without actual occurrence, Shanzhai's threat would preclude exclusion. Shanzhai vanishes as exclusive dealing is terminated or expires, but its threat constrains downstream price almost to the competitive level. Thus, Shanzhai serves as the market’s self-correcting mechanism. With the presence of intellectual property right infringement, Shanzhai is less likely to occur. Shanzhai would destruct the whole industry, but only under restrictive assumptions. Our conclusions are verified by evidence of various industries. |
| Serial Number | WP363 |
| Time | 2012-09-18 |
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