Abstract
This study evaluates the effects of institutional investors' common ownership of firms competing in the same market. Overall, common ownership has two opposing effects: (a) it serves as a device for weakening market competition, and (b) it induces diversification, thereby reducing portfolio risk. We conduct a detailed welfare analysis within which the competition‐softening effects of an increased degree of common ownership is weighted against the associated diversification benefits.
| Original language | English |
|---|---|
| Peer-reviewed scientific journal | Journal of Economics & Management Strategy |
| Volume | 29 |
| Issue number | 3 |
| Pages (from-to) | 706-723 |
| Number of pages | 18 |
| ISSN | 1058-6407 |
| DOIs | |
| Publication status | Published - 30.05.2020 |
| MoE publication type | A1 Journal article - refereed |
Keywords
- 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
