Active Investors, Passive Investors, and Common Ownership

Research output: Contribution to journalArticleScientificpeer-review


Recent studies have extensively examined the hypothesis that a higher degree of common ownership relaxes competition. This approach has typically conducted comparative statics analysis based on exogenously given rates of common ownership. This study constructs a simple model in which common ownership emerges as an equilibrium outcome resulting from ownership acquisition. We characterize the equilibrium incentives of institutional owners to acquire common ownership of the firms operating in a duopolistic product market. Further, we explore the effects of common ownership on passive investors, consumer welfare, and total welfare.
Original languageEnglish
Peer-reviewed scientific journalAEA Papers and Proceedings
Pages (from-to)565-568
Number of pages4
Publication statusPublished - 01.05.2020
MoE publication typeA1 Journal article - refereed


  • 511 Economics

Areas of Strength and Areas of High Potential (AoS and AoHP)

  • AoS: Competition economics and service strategy - Quantitative consumer behaviour and competition economics


Dive into the research topics of 'Active Investors, Passive Investors, and Common Ownership'. Together they form a unique fingerprint.

Cite this