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Competition policy costs to firms
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Resumo(s)
The existence of competition policy forces companies to adjust their behaviour. This is
also costly. Using a database from a company on contracts, I will try to estimate if a
specific competition policy disposition, supply contracts cannot be longer than 60
months, has costs for the coffee suppliers operating in the Portuguese “on-trade” coffee
market. The estimation method used in this paper will be OLS. The results suggest that
limiting the duration of exclusivity contracts to 60 months can be harmful to the coffee
suppliers and it can even seriously affect the market functioning.
Key
Descrição
Palavras-chave
Vertical restraints Exclusive contracts Specific investments Competition policy