Product positioning with overlapping ownership

Youping Li and Jianhu Zhang

Economics Letters, 2021, vol. 208, issue C

Abstract: This paper investigates the duopoly firms’ positioning strategies when they have overlapping ownership. We find that the firms position themselves further away from each other to soften competition as the degree of overlapping ownership increases. This increases firm profits but reduces consumer and total welfare. The anticompetitive effect of overlapping ownership is exacerbated with the additional choice of product positioning.

Keywords: Overlapping ownership; Product positioning; Welfare (search for similar items in EconPapers)
JEL-codes: G3 L1 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:208:y:2021:i:c:s0165176521003359

DOI: 10.1016/j.econlet.2021.110058

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