Partial cross ownership and collusion

Samuel de Haas (University of Giessen) and Johannes Paha (University of Giessen) find Partial cross ownership and collusion.

ABSTRACT: This article finds that non-controlling minority shareholdings among competitors lower the sustainability of collusion. This is the case under an even greater variety of situations than was indicated by earlier literature. The collusion destabilizing effect of minority shareholdings is mainly caused by their unilateral effects, and it is particularly prevalent in the presence of an effective antitrust authority.