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Multimarket contact and export entry

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  • Feinberg, Robert M.

Abstract

Despite a well-developed literature on implications of multimarket contact among firms for performance in domestic markets, only recently has theoretical and empirical work turned to similar issues in international trade. In this paper, I consider the possibility that exporters meeting rivals in multiple markets will be reluctant to enter (via exports) the home markets of those rivals. Empirical results using trade data (during 2007–2010) for the fats and oils industry support this hypothesis.

Suggested Citation

  • Feinberg, Robert M., 2013. "Multimarket contact and export entry," Economics Letters, Elsevier, vol. 121(1), pages 82-84.
    • Handle: RePEc:eee:ecolet:v:121:y:2013:i:1:p:82-84
    DOI: 10.1016/j.econlet.2013.07.014
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    References listed on IDEAS

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    1. Feinberg, Robert M., 1984. "Mutual forbearance as an extension of oligopoly theory," Journal of Economics and Business, Elsevier, vol. 36(2), pages 243-249, May.
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    4. Jans, Ivette & Rosenbaum, David I., 1997. "Multimarket contact and pricing: Evidence from the U.S. cement industry," International Journal of Industrial Organization, Elsevier, vol. 15(3), pages 391-412, May.
    5. Philip M. Parker & Lars-Hendrik Roller, 1997. "Collusive Conduct in Duopolies: Multimarket Contact and Cross-Ownership in the Mobile Telephone Industry," RAND Journal of Economics, The RAND Corporation, vol. 28(2), pages 304-322, Summer.
    6. William N. Evans & Ioannis N. Kessides, 1994. "Living by the "Golden Rule": Multimarket Contact in the U. S. Airline Industry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(2), pages 341-366.
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    8. Ciliberto, Federico & Williams, Jonathan, 2010. "Does Multimarket Contact Facilitate Tacit Collusion? Inference on Conjectural Parameters in the Airline Industry," MPRA Paper 24888, University Library of Munich, Germany.
    9. Corwin D. Edwards, 1955. "Conglomerate Bigness as a Source of Power," NBER Chapters, in: Business Concentration and Price Policy, pages 331-359, National Bureau of Economic Research, Inc.
    10. Owen R. Phillips & Charles F. Mason, 1992. "Mutual Forbearance in Experimental Conglomerate Markets," RAND Journal of Economics, The RAND Corporation, vol. 23(3), pages 395-414, Autumn.
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    Cited by:

    1. Miguel Ángel Ropero, 2021. "Entry deterrence when the potential entrant is your competitor in a different market," Southern Economic Journal, John Wiley & Sons, vol. 87(3), pages 1010-1030, January.
    2. Robert M. Feinberg, 2015. "“Exports‐at‐Risk”: The Effect of Multimarket Contact in International Trade," Southern Economic Journal, John Wiley & Sons, vol. 81(3), pages 769-781, January.
    3. Xuefeng, Qian & Yaşar, Mahmut, 2016. "Export Market Diversification and Firm Productivity: Evidence from a Large Developing Country," World Development, Elsevier, vol. 82(C), pages 28-47.

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    More about this item

    Keywords

    Multimarket contact; International trade; Export entry;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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