Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Friday, July 16, 2021

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

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

Wasilios Hariskos

University of Erfurt

Manfred Königstein

University of Erfurt

Konstantinos G. Papadopoulos

School of Economics, Aristotle University of Thessaloniki

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.

https://lawprofessors.typepad.com/antitrustprof_blog/2021/07/anti-competitive-effects-of-partial-cross-ownership-experimental-evidence.html

| Permalink

Comments

Post a comment