Multimarket Contact and Pricing: Evidence from the U.S. Cement Industry
We empirically examine the effect of multimarket contact on pricing in the U.S. cement industry. A model of price and quantity formation is estimated for a panel of 25 regional cement markets over 16 years. The results indicate that the divergence of price from marginal cost in a particular market is directly related to the extent of multimarket contact among firms in that market.
||Multimarket Contact and Pricing: Evidence from the U.S. Cement Industry
International Journal of Industrial Organization (1997)
v. 15 iss. 3 pp. 391-412
||Rosenbaum, David I; Jans, Ivette
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|Rosenbaum, David I||Economics