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Imminent entry and the transition to multimarket rivalry in a laboratory setting

Mason, Charles F. and Phillips, Owen R. (2016) Imminent entry and the transition to multimarket rivalry in a laboratory setting. Journal of Economics and Management Strategy, 25 (4). pp. 1018-1039. ISSN 1058-6407

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Identification Number: 10.1111/jems.12169

Abstract

In this paper we study the behavior of rivals when there is a known probability of imminent entry. Experimental markets are used to collect data on pre- and postentry production when there is an announced time of possible entry; some markets experience entry and other do not. In all preentry markets competition is more intense. Postentry behavior in all markets is more competitive compared to a baseline that had no threat. There is evidence that postentry multimarket contact raises outputs in those markets that did not experience entry, behavior we generally refer to as a conduit effect.

Item Type: Article
Official URL: http://onlinelibrary.wiley.com/journal/10.1111/(IS...
Additional Information: © 2016 Wiley Periodicals, Inc.
Divisions: Grantham Research Institute
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
JEL classification: C - Mathematical and Quantitative Methods > C9 - Design of Experiments
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance
L - Industrial Organization > L4 - Antitrust Issues and Policies
Sets: Research centres and groups > Grantham Research Institute on Climate Change and the Environment
Collections > Economists Online
Date Deposited: 17 Jan 2017 16:01
Last Modified: 20 Mar 2019 03:02
URI: http://eprints.lse.ac.uk/id/eprint/68888

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