A Model of Endogenous Cross-Holdings in Oligopoly

Cheng-Zhong Qin (), Dandan Zhu () and Shengping Zhang ()
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Cheng-Zhong Qin: Department of Economics, University of California, Santa Barbara, CA 93106-9210, USA
Dandan Zhu: Department of Economics, University of California, Santa Barbara, CA 93106-9210, USA
Shengping Zhang: Guanghua School of Management, Peking University, Beijing 100871, China

Frontiers of Economics in China-Selected Publications from Chinese Universities, 2017, vol. 12, issue 3, 465-479

Abstract: A network approach is proposed to analyze the formation of cross-holdings and anti-competitive implications. Our approach is motivated by the bilateral arrangement of passive ownership between Microsoft and Apple in 1997. We provide a complete characterization of pairwise stable cross-holdings for a model of Cournot oligopoly with a homogeneous product. Our results strengthen the competitive implications of endogenous cross-holdings in Cournot oligopoly found in the literature.

Keywords: cross-holding; Cournot equilibrium; oligopoly; pairwise stability (search for similar items in EconPapers)
JEL-codes: C72 G0 L1 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:fec:journl:v:12:y:2017:i:3:p:465-479

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