There are several reasons why companies might engage in exclusive dealing. These include:
Market Control: It allows companies to control a larger share of the market by limiting competition. Brand Loyalty: Exclusive agreements can help build brand loyalty among consumers by ensuring that a particular brand is readily available. Supply Chain Efficiency: Streamlining the supply chain and reducing the complexity of dealing with multiple suppliers or buyers can lead to operational efficiencies. Incentives: Suppliers may offer incentives such as lower prices or better terms to buyers who agree to exclusive deals.