Strategic Behaviors and Market Outcomes: Two Essays

This dissertation is comprised of two essays related, broadly, to themes of competitive dynamics and economic consequences. In Essay One, “Many Fields of Battle: How Cost Structure Affects Competition across Multiple Markets,” a conjectural variation model is developed to examine what role cost structure and product differentiation play in affecting the mutual forbearance outcome arising from multi-market contact. The analytical results show that the degree of collusion (as measured by the price level) enhanced through multimarket contact is greater when multimarket contact occurs between firms with similar production costs and undifferentiated products….

Author: Zou, Li

Source: University of Maryland

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