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.
- 511 Nationalekonomi
Styrkeområden och områden med hög potential (AoS och AoHP)
- AoS: Konkurrensanalys och servicestrategi - Kvantitativt konsumentbeteende och konkurrensekonomi