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Mutual Forbearance Among Multimarket Firms: A Behavioral Approach To Tacit Cooperation, John Stephan
Mutual Forbearance Among Multimarket Firms: A Behavioral Approach To Tacit Cooperation, John Stephan
John Stephan
Emerging empirical evidence has noted that multimarket firms may not always behave in
ways that are consistent with their multimarket positions. Assuming multimarket ties
between firms exists that are sufficient to permit tacit agreement among them to refrain
from aggressive competition, we describe how additional factors are likely to affect the
decision of managers of multimarket firms to abide by such an agreement. In particular,
we focus on factors that are likely to make the negative consequences of violating a tacit
agreement of mutual forbearance more salient and those that encourage managers to
direct their firms to behave in more …
Exiting Prematurely? #11;How Ceos Perceive Multimarket Competition And Exit Decisions, John Stephan
Exiting Prematurely? #11;How Ceos Perceive Multimarket Competition And Exit Decisions, John Stephan
John Stephan
Studies of multimarket competition have developed fairly fine-grained depictions of some firm behaviors when these firms are embedded in a web of multimarket contacts. For other behaviors, the picture is not as clear. This paper looks at the exit decisions of multimarket competitors to try to resolve the discrepancies that have arisen across studies that have examined exit decisions within a multimarket context. In particular, prior studies have postulated and found both negative linear relationships between increasing multimarket contact and the likelihood of a firm exiting a particular market, and curvilinear relationships, where the likelihood of exit first increases with …