Will, Thomas E. (2012) Multimarket Contact Posture and Non-Price Competition: A Firm-Level Test of Forbearance Parameters. Irish Journal of Management, 32 (1): 2. pp. 27-52. ISSN 1649-248X
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Abstract
Multimarket contact (MMC) research is driven by the mutual forbearance hypothesis, which holds that firms confronting one another in multiple markets tacitly collude. Existing work emphasises price-related dependent variables however, begging the question of whether forbearance effects are pervasive across competitive dimensions, or are limited to price competition and coupled with amplified competitive intensity along such non-price dimensions as marketing and customer service. Interestingly, compelling rationales exist for both pervasive forbearance and partial forbearance hypotheses. This study theoretically explores and empirically tests the competing hypotheses in the United States (US) passenger airline industry. To this end, I introduce and operationalise a firm-level MMC construct designated Multimarket Contact Posture. Positive relationships are found between Multimarket Contact Posture and competitive intensity in both marketing and customer service, indicating support for the partial forbearance hypothesis.
Item Type: | Article |
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Keywords: | Competition; Forbearance; Strategy; |
Academic Unit: | Faculty of Social Sciences > School of Business |
Item ID: | 20390 |
Depositing User: | IAM School of Business |
Date Deposited: | 15 Aug 2025 11:55 |
Journal or Publication Title: | Irish Journal of Management |
Publisher: | Irish Academy of Management |
Refereed: | Yes |
URI: | https://mural.maynoothuniversity.ie/id/eprint/20390 |
Use Licence: | This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here |
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