Live and let live type behavior in a multi-market setting with demand fluctuations

Abstract

This paper formalizes a cooperative mode of behavior which captures essential elements of the live and let live philosophy, and shows that adoption of such a policy tends to benefit firms in oligopolistic markets. It is indicated that multiplicity of contacts and exposure to demand fluctuations may simplify coordination and enhance the potential and profitability of live and let live type behavior. © 1988.