Free Entry under Common Ownership

Free Entry under Common Ownership

By:	Sato, Susumu; Matsumura, Toshihiro
Abstract:	This study investigates the equilibrium and welfare properties of free entry under common ownership. We formulate a model in which incumbents under common ownership choose whether to enter a new market. We find that an increase in common ownership reduces entries, which may or may not improve welfare. Welfare has an inverted-U shaped relationship with the degree of common ownership. However, if firms do not have common ownership before the entry, after entry common ownership harms welfare.
URL:	http://d.repec.org/n?u=RePEc:pra:mprapa:97525&r=com