Friday, October 26, 2018
Ulrich Schwalbe addresses Common Ownership and Competition – The Current State of the Debate.
ABSTRACT: Common ownership gives rise to competitive concerns as diversified investors have an incentive to soften competition in a market. Whether minority shareholders are able to influence the behaviour of firms is currently under debate. Empirical work about the effects of common ownership is still in its infancy and there is an intense discussion regarding conceptual and methodological approaches. The studies seem to justify the competitive concerns but further empirical and theoretical work is needed for a thorough assessment of the extent of common ownership and its effects on competition.