Cross Holding and Imperfect Product Markets

Matthew J. Clayton and Bjørn Jørgensen

New York University, Leonard N. Stern School Finance Department Working Paper Seires from New York University, Leonard N. Stern School of Business-

Abstract: We consider a setting in which two firms first choose equity positions in each others stock (cross holdings) and then compete in an imperfect product market. We demonstrate that cross holdings lead to higher firm profits and higher consumer surplus when the competitors’ products are complements. We find that cross holdings lead to lower firm profits and higher consumer surplus when the products are substitutes. This finding is in contrast to the existing literature which establishes that cross holdings leads

Date: 1999-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.stern.nyu.edu/fin/workpapers/papers99/wpa99058.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.stern.nyu.edu/fin/workpapers/papers99/wpa99058.pdf [301 Moved Permanently]--> https://www.stern.nyu.edu/fin/workpapers/papers99/wpa99058.pdf)

Related works:
Working Paper: Cross Holding and Imperfect Product Markets (1998)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fth:nystfi:99-058

Access Statistics for this paper

More papers in New York University, Leonard N. Stern School Finance Department Working Paper Seires from New York University, Leonard N. Stern School of Business- U.S.A.; New York University, Leonard N. Stern School of Business, Department of Economics . 44 West 4th Street. New York, New York 10012-1126. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().