The impact on market outcomes of the portfolio selection of large equity investors

Emmanuel Petrakis and Diego Moreno Ruiz

UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía

Abstract: We study a setting in which several large investors select their portfolios of equity of the firms competing in a symmetric duopoly considering the impact of their interests on the managerial incentives. Assuming that investors objective is to maximize the value of their portfolios, we show that equilibrium portfolios will be symmetric, contributing to enhance the anticompetitive impact of the presence of large investors on price mark ups and profits.

Keywords: Market; Power; Common; Ownership; Minority; Equity; Portfolio; Selection (search for similar items in EconPapers)
JEL-codes: L13 L2 L4 L5 (search for similar items in EconPapers)
Date: 2021-11-22
New Economics Papers: this item is included in nep-com, nep-cwa and nep-ind
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: The impact on market outcomes of the portfolio selection of large equity investors (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:cte:werepe:33659

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