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Article

v. 15 iss. 3 pp. 391-412
Multimarket Contact and Pricing: Evidence from the U.S. Cement Industry
International Journal of Industrial Organization (1997)

 

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.


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About the Researcher
David I. Rosenbaum
Interim Associate Dean, College of Business Administration
Professor of Economics Associate Director for Academic Affairs/Business Raikes School of Computer Science & Management

Department: Economics

Ph.D., University of Wisconsin--Madison
 



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