Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/130478
Authors: 
Mason, Charles F.
Phillips, Owen R.
Year of Publication: 
2016
Series/Report no.: 
CESifo Working Paper 5853
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.
Subjects: 
entry
rivalry
market experiments
JEL: 
L10
L40
C90
Document Type: 
Working Paper

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