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Horizontal partial shareholding, dual purpose concern, and mixed duopoly competition

Author

Listed:
  • Pin Zhou
  • Hong Hong

Abstract

This paper investigates the combined effect of horizontal partial shareholding and dual purpose concern on quantity competition. We identify the type of acquiring firm on production quantity, consumer surplus, and social welfare. The results show that the combined effect may accelerate competition or mitigate competition, which depends on the trade‐off between the competition‐softening effect of horizontal partial shareholding and competition‐intensifying effect of dual purpose concern. Whether the consumer and society benefit from the combined effect also depends on the magnitude of horizontal shareholding and socialresponsibility preference.

Suggested Citation

  • Pin Zhou & Hong Hong, 2022. "Horizontal partial shareholding, dual purpose concern, and mixed duopoly competition," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 3107-3115, October.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:7:p:3107-3115
    DOI: 10.1002/mde.3584
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    References listed on IDEAS

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    2. Leonardos, Stefanos & Petrakis, Emmanuel & Skartados, Panagiotis & Stamatopoulos, Giorgos, 2021. "Partial passive ownership holdings and licensing," Economics Letters, Elsevier, vol. 204(C).
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    5. Pu‐yan Nie & Chan Wang & Yan Meng, 2019. "An analysis of environmental corporate social responsibility," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 40(4), pages 384-393, June.
    6. Li, Sanxi & Ma, Hongkun & Zeng, Chenhang, 2015. "Passive cross holding as a strategic entry deterrence," Economics Letters, Elsevier, vol. 134(C), pages 37-40.
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