Silent Financial Interests and Product Innovation
8 Pages Posted: 27 Jun 2018
Date Written: June 4, 2018
We study quality-enhancing R&D, price competition, and welfare in markets with asymmetric passive partial ownership (PPO) holdings. The asymmetries in PPOs generate a positive re-allocation effect which, in some cases, can increase consumer and total surplus in markets with no spillovers.
Keywords: Partial Ownership, Minority Shareholdings, R&D Investments, Price Competition, Welfare
JEL Classification: D43, L11, L40, G24, G34
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