Abstract
This study explores the effects of market structure characteristics and exogenous market interventions on competitive reaction intensity over time. It is found that moderate growth rate and moderate concentration induce greater competitive reactions. The effect of the exogenous intervention in the industry studied appears to have a dampening impact on competitive responses. Our research inquiry addresses some issues raised on competition, in general, by Weitz (1985) and specifically on competitive responses by Robinson (1988) and Gatignon, Anderson, and Helsen (1989).
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The authors express their appreciation to Lee Cooper, Imran Currim, Hubert Gatignon, Avijit Ghosh, Jagmohan Singh Raju and Bill Robinson for their helpful comments and to Mark Parry for his computer programming assistance. The authors gratefully acknowledge research support from the College of Business Administration, University of Georgia, and Graduate School of Management, Rutgers University.
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Reddy, S.K., Holak, S.L. The effects of market structure characteristics on competitive reaction intensity: A longitudinal analysis. Market Lett 2, 293–308 (1991). https://doi.org/10.1007/BF02404079
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DOI: https://doi.org/10.1007/BF02404079