Firms competing on several geographical markets and/or products show mutual forbearance because of the reciprocal threats of reprisals. This tacit collusion is reinforced by the existence of spheres of influence. This research focuses on the impact of the spheres of influence on the competing behavior of the firms by studying their strategic actions of internal growth, external growth and joint growth. The empirical analysis of the behaviors of the five leaders of world hotel trade makes it possible to establish the impact of the spheres of influence on the competing behavior of firms and forbearance.
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Find related papers by JEL classification: L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
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