Multimarket contact externalities : the effect of rival's multimarket contacts on focal firm performance
Gómez, Jaime
Orcos, Raquel
Palomas, Sergio
Universitat Autònoma de Barcelona. Departament d'Empresa

Imprint: Universitat Autònoma de Barcelona. Departament d'Economia de l'Empresa 2013
Description: 51 p.
Abstract: Given that firms develop their activities in a network of multiple players, interfirm rivalry is not only a matter of direct competitors, but also of indirect competition. In spite of this, the literature on competitive dynamics tends to focus on analyzing rivalry as an exclusive function of the competitive relationship between a focal firm and its direct rivals. In this article, we extend competitive dynamics literature by considering how focal firms are affected by the relationships of their rivals with third-party firms. Specifically, we study the effect that the multimarket contacts of rivals produces on the performance of the focal firm. Additionally, we incorporate the idea that there are different strategic options for operating in an industry that affect the intensity of multimarket contact externalities. Our results show that multimarket contact among firms causes externalities that indirectly affect firms that are not directly involved in this competitive relationship. We find that multimarket contact externalities differ between and within strategic groups.
Rights: Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, i la comunicació pública de l'obra, sempre que no sigui amb finalitats comercials, i sempre que es reconegui l'autoria de l'obra original. No es permet la creació d'obres derivades. Creative Commons
Language: Anglès
Series: Departament d'Economia de l'Empresa. Documents de treball
Series: Document de treball (Universitat Autònoma de Barcelona. Departament d'Economia de l'Empresa) ; 13/2
Document: Working paper
Subject: Planificació estratègica ; Rendiment industrial ; Competència econòmica



51 p, 235.9 KB

The record appears in these collections:
Research literature > Working papers > Department of Business. Working papers

 Record created 2014-01-24, last modified 2024-05-25



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