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

Charles Mason and Owen R. Phillips

Journal of Economics & Management Strategy, 2016, vol. 25, issue 4, 1018-1039

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.

Date: 2016
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https://doi.org/10.1111/jems.12169

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Working Paper: 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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