Research suggests that a firm with greater multi-market contact is ________ likely to initiate an attack and ________ likely to move (respond) aggressively when attacked.
A)less; more
B)more; more
C)more; less
D)less; less

Question

Quizplus · Accepted Answer

Research indicates that firms with greater multi-market contact are less likely to initiate attacks due to the mutual forbearance theory, which suggests that firms are more cautious in markets where they encounter the same competitors across multiple markets. However, if attacked, these firms are more likely to respond aggressively to defend their position across the various markets they share with the aggressor.

Research Suggests That a Firm with Greater Multi-Market Contact Is