Download This PaperPassive Forward Ownership and Upstream Collusion
9 Pages Posted: 22 Jan 2022
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Passive Forward Ownership and Upstream Collusion
Number of pages: 9
Posted: 22 Jan 2022
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Passive forward ownership and upstream collusion
Number of pages: 13
Posted: 16 Sep 2021
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Abstract
We examine the effects of passive forward ownership on the sustainability of upstream collusion. We consider a homogeneous Cournot duopoly with competing vertical chains. In one vertical chain, the upstream firm has passive ownership over its downstream client. We find that passive forward ownership hinders upstream collusion. We identify as the main driver of our finding the negative effect that passive forward ownership has on the upstream non‐owner’s collusive profits.
Keywords: tacit collusion, Passive vertical ownership, Competing vertical chains
Suggested Citation: Suggested Citation
Pinopoulos, Ioannis and Charistos, Konstantinos and Skartados, Panagiotis, Passive Forward Ownership and Upstream Collusion. Available at SSRN: https://ssrn.com/abstract=4015061 or http://dx.doi.org/10.2139/ssrn.4015061
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