Code and Data for: Market Entry, Fighting Brands and Tacit Collusion

Principal Investigator(s): View help for Principal Investigator(s) Marc Bourreau, Telecom Paris, Institut Polytechnique de Paris; Yutec Sun, CREST-ENSAI; Frank Verboven, KU Leuven, CEPR

Version: View help for Version V1

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code			06/23/2021 08:17:AM
data			06/23/2021 08:07:AM
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README.md	text/x-web-markdown	24.9 KB	07/26/2021 05:46:AM
README.txt	text/plain	24.9 KB	07/23/2021 06:46:AM

Project Citation:

Bourreau, Marc, Sun, Yutec, and Verboven, Frank. Code and Data for: Market Entry, Fighting Brands and Tacit Collusion. Nashville, TN: American Economic Association [publisher], 2021. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2021-10-19. https://doi.org/10.3886/E138921V1

Project Description

Summary: We study a major new entry in the French mobile telecommunications market, followed by the introduction of fighting brands by the three incumbents. Using an empirical oligopoly model, we find that the incumbents' fighting brand strategies are difficult to rationalize as unilateral best responses. Instead, their strategies are consistent with a breakdown of tacit semi-collusion: before entry, the incumbents could successfully coordinate on restricting product variety to avoid cannibalization; after entry, this outcome became harder to sustain because of increased business stealing incentives. Consumers gained considerably from the added variety and, to a lesser extent, from the incumbents' price responses.

Funding Sources: Telecom Paris; KU Leuven

Scope of Project

JEL Classification:
L13 Oligopoly and Other Imperfect Markets
L96 Telecommunications

Geographic Coverage: France

Time Period(s): 1/1/2011 – 12/13/2014

Data Type(s): administrative records data; census/enumeration data; observational data; survey data

Methodology

Data Source: Kantar, INSEE, ANFR

Collection Mode(s): other; web scraping; web-based survey

Unit(s) of Observation: Product line, region, quarter

Geographic Unit: Région in France

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Published Versions

V1 [2021-10-19]

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Dublin Core

DDI 2.5

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