Anti-Competitive Effects of Partial Cross-Ownership: Experimental Evidence

39 Pages Posted: 29 Apr 2021

See all articles by Wasilios Hariskos

Wasilios Hariskos

University of Erfurt

Manfred Königstein

University of Erfurt

Konstantinos G. Papadopoulos

School of Economics, Aristotle University of Thessaloniki

Date Written: March 24, 2021

Abstract

In theory, partial cross-ownership affects product prices and consumer welfare negatively, but empirical evidence is highly controversial. For competition policy it is important whether such effects are substantial enough to cause action. We report a lab experiment on a homogeneous duopoly market with symmetric passive crossownership in which the degree of cross-ownership varies between treatments (LOW vs HIGH). We argue that the observed negative effects are substantial enough to be considered problematic in real markets.

Keywords: cross–ownership, common ownership, minority shareholdings, silent financial interest, Cournot experiment

JEL Classification: C91, L41, L22, D43

Suggested Citation

Hariskos, Wasilios and Königstein, Manfred and Papadopoulos, Konstantinos G., Anti-Competitive Effects of Partial Cross-Ownership: Experimental Evidence (March 24, 2021). Available at SSRN: https://ssrn.com/abstract=3813444 or http://dx.doi.org/10.2139/ssrn.3813444

Wasilios Hariskos

University of Erfurt ( email )

Staatswissenschaftliche Fakultät
Nordhaeuser Str. 63
Erfurt, DE Thuringia 99089
Germany
00493617374582 (Phone)

HOME PAGE: http://https://www.uni-erfurt.de/angewandte-mikrooekonomie/team/dr-wasilios-hariskos/

Manfred Königstein (Contact Author)

University of Erfurt ( email )

Internationales Buro
Nordhaeuser Str. 63
D - 99089 Erfurt
Germany

Konstantinos G. Papadopoulos

School of Economics, Aristotle University of Thessaloniki ( email )

Panepistimioupoli A.U.TH.
P.O. Box 170
Thessaloniki, 54124
Greece
+302310997120 (Phone)
+302310996426 (Fax)

HOME PAGE: http://users.auth.gr/kpap

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