ISSUES IN COMPETITION LAW AND POLICY, Vol. 3, p. 1637, ABA Section of Antitrust Law, 2008
24 Pages Posted: 26 Feb 2009
Date Written: February 22, 2009
This chapter discusses the economics and legal analysis of passive investment among competitors. It shows that, much like horizontal mergers, passive investment may have both unilateral and coordinated anticompetitive effects. I examine two special cases: (1) passive investment by a firm's controlling shareholder in the firm's competitor, and (2) multilateral passive investments.
Keywords: partial ownership, tacit collusion, passive investment, multilateral hodlings, controlling shareholders, facilitating practices, solely for investment, clayton act
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