@techreport{publications25799, volume = {17-876}, month = {December}, author = {Bruno Jullien and Markus Reisinger and Patrick Rey}, series = {TSE Working Paper}, booktitle = {TSE Working Paper}, type = {Working Paper}, address = {Toulouse}, title = {Vertical Foreclosure and Multi-Segment Competition}, publisher = {TSE Working Paper}, year = {2017}, institution = {Universit{\'e} Toulouse 1 Capitole}, keywords = {Foreclosure, Vertical Contracting, Customer Segments, Downstream Competition}, url = {https://publications.ut-capitole.fr/id/eprint/25799/}, abstract = {This paper analyzes a supplier's incentives to foreclose downstream entry when entrants have stronger positions in different market segments, thus bringing added value as well as competition. We first consider the case where wholesale contracts take the form of linear tariffs, and characterize the conditions under which the competition-intensifying effect dominates, thereby leading to foreclosure. We then show that foreclosure can still occur with non-linear tari?s, even coupled with additional provisions such as resale price maintenance.} }