Concatenating bipartite graphs

Let $x,y\in(0,1]$ and let $A,B,C$ be disjoint nonempty subsets of a graph $G$, where every vertex in $A$ has at least $x|B|$ neighbours in $B$, and every vertex in $B$ has at least $y|C|$ neighbours in $C$. We denote by $\phi(x,y)$ the maximum $z$ such that, in all such graphs $G$, there is a vertex $v$ in $C$ that is joined to at least $z|A|$ vertices in $A$ by two-edge paths. The function $\phi$ is interesting, and we investigate some of its properties. For instance, we show that it is symmetric in $x$ and $y$, and that it has a discontinuity at $x=y=1/k$ for all integers $k>1$. We raise a number of questions and conjectures.