Which economic practice involves controlling market access to limit competition?

Prepare for the SACE Stage 2 Economics exam with a comprehensive quiz. Study through flashcards and multiple-choice questions, each featuring hints and explanations for thorough understanding. Get ready for your exam!

The practice of exclusive dealing involves arrangements that limit other businesses from accessing certain markets or selling specific products, thereby restricting competition. This can be done through contracts that require a retailer or supplier to deal exclusively with a particular company, preventing competitors from entering the market or offering similar products. Exclusive dealing can strengthen a company's market position by making it more difficult for rivals to offer their goods, which can lead to reduced competition and potential price control.

In contrast, anti-competitive pricing generally refers to strategies that manipulate prices to deter competition, while price collusion involves agreements between competitors to set prices at a certain level, undermining market competition. Market share distribution focuses on how a market's total shares are divided among competitors but does not inherently involve controlling access to the market itself.

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