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Contracts as entry deterrence

Name: Contracts as entry deterrence
Brand: Grin Verlag
SKU: 01621766
Price: 5573 HUF
Availability: InStock
Author: Jessica Mohr
ISBN: 9783640349876

Contracts in Organizations and between them

Jessica Mohr

Language

English

Book Paperback

Libristo code: 01621766

Publishers Grin Verlag, June 2009

Seminar paper from the year 2009 in the subject Law - Civil / Private / Trade / Anti Trust Law / Bus... Full description

Libristo code: 01621766

38 b

5 573 Ft

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Seminar paper from the year 2009 in the subject Law - Civil / Private / Trade / Anti Trust Law / Business Law, printed single-sided, grade: 1,3, Otto-von-Guericke-University Magdeburg (Fakultät für Wirtschaftswissenschaft), course: Incentives in Markets and Organizations, language: English, abstract: Contracts between buyers and sellers can have social welfare decreasing effects. They prevent entry of entrants with lower production costs than the incumbent, even though they not always prevent it entirely. The buyers may be better of accepting a contract, when the price and liquidated damages specified in it generate higher surplus for the buyer than without a contract. However, the contracts are disadvantageous for other society members. Free-rider problems occur, too. New financial means (options) may diminish the negative effects of contracts. In considering contracts implications entirely, also their duration is important.