Multimarket contact and price coordination in the cellular telephone industry

Meghan R. Busse*

*Corresponding author for this work

Research output: Contribution to journalArticle

51 Scopus citations

Abstract

Empirical studies have confirmed the prediction of theoretical models that contact in multiple markets may enhance firms' abilities to tacitly collude and consequently achieve higher prices and profits. It has remained largely unexplored, however, how firms coordinate their actions. This paper identifies a method of pricing in the cellular telephone industry that seems to enable firms to coordinate their actions across markets. This pricing pattern is found to raise prices by approximately 7-10%, and cannot be attributed to a variety of noncooperative explanations.

Original languageEnglish (US)
Pages (from-to)287-320
Number of pages34
JournalJournal of Economics and Management Strategy
Volume9
Issue number3
DOIs
StatePublished - Jan 1 2000

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Strategy and Management
  • Management of Technology and Innovation

Fingerprint Dive into the research topics of 'Multimarket contact and price coordination in the cellular telephone industry'. Together they form a unique fingerprint.

  • Cite this