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dc.contributor.authorLeheyda, Ninaen_US
dc.date.accessioned2009-08-12T07:26:17Z-
dc.date.available2009-08-12T07:26:17Z-
dc.date.issued2008en_US
dc.identifier.urihttp://hdl.handle.net/10419/27601-
dc.description.abstractMultimarket contact is perceived to be one of those factors, which can facilitate and sustain implicit collusive (cooperative) arrangements. This paper attempts to develop new approaches to study the interdependence of firm behaviour across markets, especially in the context of differentiated products industries. I analyse the principle of conducting a test of the mutual forbearance hypothesis, and its application using particular data. The multimarket contact effects are studied within a structural oligopoly model for differentiated products for the US automobile market on the basis of the aggregate product-level data for 2001-2003. Some support has been found that multimarket contact may influence competition in the automobile market and increase the firms' strategic interdependence. This effect is, however, difficult to disentangle from the effect of the market concentration in the US automobile market (dominance of the market by the American Big Three) on the firm behaviour, which could also facilitate collusion. In other words, it is difficult to argue whether coordination is due to market concentration, or due to multimarket contact, or both. Concentration is argued to foster the slack, which is transferred through the multimarket contact.en_US
dc.language.isoengen_US
dc.publisherZentrum für Europäische Wirtschaftsforschung (ZEW) Mannheimen_US
dc.relation.ispartofseriesZEW Discussion Papers 08-118en_US
dc.subject.jelL25en_US
dc.subject.jelL13en_US
dc.subject.jelL62en_US
dc.subject.ddc330en_US
dc.subject.keywordmultimarket contacten_US
dc.subject.keywordcollusionen_US
dc.subject.keywordautomobile industryen_US
dc.subject.keywordtest for non-nested hypothesisen_US
dc.subject.keywordmenu testen_US
dc.subject.keywordstructural oligopoly modelsen_US
dc.subject.stwKraftfahrzeugmarkten_US
dc.subject.stwOligopolen_US
dc.subject.stwWettbewerbsbeschränkungen_US
dc.subject.stwSchätzungen_US
dc.subject.stwUSAen_US
dc.titleMarket Power, Multimarket Contact and Pricing: Some Evidence from the US Automobile Marketen_US
dc.typeWorking Paperen_US
dc.identifier.ppn589804154en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:zewdip:7508-
Appears in Collections:Publikationen von Forscherinnen und Forschern des ZEW
ZEW Discussion Papers

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