Revisiting the Anticompetitive Effects of Common Ownership

Azar, José and Xavier Vives

No 16612, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We use data from the U.S. airline industry to study the effect of intra-industry and inter-industry common ownership on prices. We find that, consistent with the hypothesis from the general equilibrium model of Azar and Vives (2021), increases over time in intra-industry common ownership are associated with higher prices, while increases in inter-industry common ownership are associated with lower prices. We also find that common ownership by the “Big Three†(BlackRock, Vanguard and State Street) is associated with lower airline prices, while common ownership by shareholders other than the Big Three is associated with higher prices.

Keywords: Common ownership; Antitrust; Competition policy; General equilibrium (search for similar items in EconPapers)
Date: 2021-10
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