Market Commonality vs. Resource Similarity

May 1st, 2015
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Market commonality has to do with the number of different markets that the firm and the competitors are jointly involved with. It also pertains to the degree of importance of the individual markets to each. There are many firms competing against one another in many markets and this engages them in multimarket competition. Firms with more multimarket contacts is less likely to initiate an attack, but more likely to respond aggressively when they are attacked.

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