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- W3200411482 abstract "We study a major new entry in the French mobile telecommunications market, followed by the introduction of fighting brands by the three incumbents. Using an empirical oligopoly model, we find that the incumbents’ fighting brand strategies are difficult to rationalize as unilateral best responses. Instead, their strategies are consistent with a breakdown of tacit semi-collusion: before entry, the incumbents could successfully coordinate on restricting product variety to avoid cannibalization; after entry, this outcome became harder to sustain because of increased business stealing incentives. Consumers gained considerably from the added variety and, to a lesser extent, from the incumbents’ price responses. (JEL L13, L21, L96, M31)" @default.
- W3200411482 created "2021-09-27" @default.
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- W3200411482 date "2021-11-01" @default.
- W3200411482 modified "2023-10-05" @default.
- W3200411482 title "Market Entry, Fighting Brands, and Tacit Collusion: Evidence from the French Mobile Telecommunications Market" @default.
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- W3200411482 doi "https://doi.org/10.1257/aer.20190540" @default.
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