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Yes, multimarket competition can undermine mutual forbearance among firms. When companies operate in multiple markets, the incentive to compete aggressively increases, as firms may see opportunities to gain market share in one area at the expense of others. This dynamic can lead to a breakdown of the tacit understanding that typically discourages aggressive competition in a single market, prompting firms to engage in more confrontational tactics across their various markets. As a result, the overall stability of pricing and competitive behavior may be compromised.

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2mo ago

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