Markets linked by rising marginal costs: Implications for multimarket contact, recoupment, and retaliatory entry

作者：Chen, Zhiqi; Ross, Thomas W^*

来源：Review of Industrial Organization, 2007, 31(1): 1-21.

DOI：10.1007/s11151-007-9143-y

• rising marginal costs
• multimarket contact
• recoupment
• entry deterrence
• chain stores
• conglomerate mergers

This paper studies the effects on prices and welfare of multimarket contact when firms serve multiple markets from a single facility with rising marginal costs. Here a link is created between markets, even with independent demands: greater output in one market leads to a higher marginal cost and lower output in other markets; and multimarket contact can indeed lower welfare. Variations of the model can explain two other puzzling phenomena: "recoupment" - lower prices in one market "paid for" by higher prices in other markets; and "retaliatory entry" - the credible threat to enter a rival's market if it enters yours.

• 出版日期2007-8
• 单位厦门大学