Common ownership, corporate control and price competition

Anna Bayona, Ángel L. López and Anton-Giulio Manganelli

Journal of Economic Behavior & Organization, 2022, vol. 200, issue C, 1066-1075

Abstract: We examine price competition with homogeneous products in the presence of general common ownership arrangements allowing for different corporate control structures. We show that equilibria with positive profits exist (including the monopoly outcome) when the manager places the same weight on the profit of her firm as on the average profit of all the other firms. This condition supports symmetric and asymmetric stakes and can arise as an equilibrium of a network formation game or a bargaining process.

Keywords: Partial ownership; Proportional control; Silent financial interests; Bertrand competition; Minority shareholders (search for similar items in EconPapers)
JEL-codes: G34 L11 L40 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:200:y:2022:i:c:p:1066-1075

DOI: 10.1016/j.jebo.2022.06.032

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