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- W2080271710 abstract "This paper tests the hypothesis that conglomerate mergers lessen price competition through the creation of mutual forbearance behavior. This hypothesis is tested by estimating the impact of multi-market contacts on price competition in manufacturing industries. Potential interfirm contacts are computed for 195 of the top 200 American manufacturers in 1963. Measures of multi-market contacts are then constructed and introduced as additional explanatory variables in a three-equation model of the determinants of industry price-cost margins. The empirical results do not support the mutual forbearance hypothesis, and suggest that conglomerate mergers should not be proscribed on that basis." @default.
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- W2080271710 date "1985-09-01" @default.
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- W2080271710 title "Conglomerate mergers, mutual forbearance behavior and price competition" @default.
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- W2080271710 doi "https://doi.org/10.1002/mde.4090060306" @default.
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