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Non-Controlling Minority Shareholdings and Collusion

Author

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  • Samuel Haas

    (Justus-Liebig-University)

  • Johannes Paha

    (Justus-Liebig-University
    Stellenbosch University
    Potsdam University)

Abstract

This article merges theoretical literature on non-controlling minority shareholdings (NCMS) in a coherent model to study the effects of NCMS on competition and collusion. The model encompasses both the case of a common owner holding shares of rival firms as well as the case of cross ownership among rivals. We find that by softening competition, NCMS weaken the sustainability of collusion under a greater variety of situations than was indicated by earlier literature. Such effects exist, in particular, in the presence of an effective competition authority.

Suggested Citation

  • Samuel Haas & Johannes Paha, 2021. "Non-Controlling Minority Shareholdings and Collusion," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 58(3), pages 431-454, May.
    • Handle: RePEc:kap:revind:v:58:y:2021:i:3:d:10.1007_s11151-020-09758-y
    DOI: 10.1007/s11151-020-09758-y
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    References listed on IDEAS

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    Cited by:

    1. Youping Li & Jie Shuai, 2022. "Input price discrimination and horizontal shareholding," Journal of Regulatory Economics, Springer, vol. 61(1), pages 48-66, February.
    2. Li, Youping & Zhang, Jianhu & Zhou, Zipeng, 2023. "Vertical differentiation with overlapping ownership," Economics Letters, Elsevier, vol. 222(C).
    3. Li, Youping & Zhang, Jianhu, 2021. "Product positioning with overlapping ownership," Economics Letters, Elsevier, vol. 208(C).
    4. Charistos, Konstantinos & Papadopoulos, Konstantinos G., 2022. "Cartel reporting under passive common ownership," Economics Letters, Elsevier, vol. 216(C).

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