Imminent Entry and the Transition to Multimarket Rivalry in a Laboratory Setting

Charles Mason and Owen R. Phillips

No 5853, CESifo Working Paper Series from CESifo

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 post-entry production when there is an announced time of possible entry; some markets experience entry and other do not. In all pre-entry markets competition is more intense. Post-entry behavior in all markets is more competitive compared to a baseline that had no threat. There is evidence that post-entry 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 experiments (search for similar items in EconPapers)
JEL-codes: C90 L10 L40 (search for similar items in EconPapers)
Date: 2016
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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:ces:ceswps:_5853

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