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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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
Date Deposited:	17 Jan 2017 16:01
Last Modified:	14 Sep 2024 07:13
URI:	http://eprints.lse.ac.uk/id/eprint/68888

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