Overlapping ownership, pass-through, and product differentiation

Teis Lunde Lømo

Economics Letters, 2024, vol. 237, issue C

Abstract: Overlapping ownership can lead firms to raise prices, but what determines the magnitude of this effect? I study how the price effect of overlapping ownership depends on demand and cost conditions and the degree of product differentiation in a Bertrand oligopoly. I do so by extending Weyl and Fabinger’s (2013) conduct parameter approach which highlights the importance of pass-through.

Keywords: Overlapping ownership; Oligopoly; Conduct parameter; Pass-through; Product differentiation (search for similar items in EconPapers)
JEL-codes: L13 L41 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:237:y:2024:i:c:s0165176524001113

DOI: 10.1016/j.econlet.2024.111628

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