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

Name File Type Size Last Modified
  input 06/23/2021 08:06:AM
  output 06/23/2021 08:06:AM
Compute.jl text/x-common-lisp 5.1 KB 06/23/2021 04:06:AM
FOCs.jl text/x-common-lisp 5.6 KB 06/23/2021 04:06:AM
Helper.jl text/x-common-lisp 13.5 KB 06/23/2021 04:06:AM
MonteCarlo.jl text/x-common-lisp 2.5 KB 06/23/2021 04:06:AM
Post.jl text/x-common-lisp 24.3 KB 06/23/2021 04:06:AM
Solve.jl text/x-common-lisp 10.4 KB 06/23/2021 04:06:AM
Tools.jl text/x-common-lisp 4.1 KB 06/23/2021 04:06:AM
TypeDef.jl text/x-common-lisp 3.6 KB 06/23/2021 04:06:AM

Project Description

Summary:  View help for 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.

Scope of Project

JEL Classification:  View help for JEL Classification
      L13 Oligopoly and Other Imperfect Markets
      L96 Telecommunications
Geographic Coverage:  View help for Geographic Coverage France
Data Type(s):  View help for Data Type(s) administrative records data; census/enumeration data; observational data; survey data

Methodology

Data Source:  View help for Data Source Kantar, INSEE, ANFR
Collection Mode(s):  View help for Collection Mode(s) other; web scraping; web-based survey
Unit(s) of Observation:  View help for Unit(s) of Observation Product line, region, quarter
Geographic Unit:  View help for Geographic Unit Région in France

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Published Versions

V1 [2021-10-19]

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