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

Charles Mason and Owen R. Phillips

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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.

Keywords: entry; rivalry; market experimentation (search for similar items in EconPapers)
JEL-codes: C9 L1 L4 (search for similar items in EconPapers)
Date: 2016-11-08
New Economics Papers: this item is included in nep-com and nep-exp
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Published in Journal of Economics and Management Strategy, 8, November, 2016, 25(4), pp. 1018-1039. ISSN: 1058-6407

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http://eprints.lse.ac.uk/68888/ Open access version. (application/pdf)

Related works:
Journal Article: Imminent Entry and the Transition to Multimarket Rivalry in a Laboratory Setting (2016)
Working Paper: Imminent Entry and the Transition to Multimarket Rivalry in a Laboratory Setting (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:68888

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