IDEAS home Printed from https://ideas.repec.org/p/koe/wpaper/2317.html
   My bibliography  Save this paper

Unprofitable Common Ownership with Asymmetric Distribution Channels

Author

Listed:
  • Aika Monden

    (Graduate School of Management, Kyoto University)

  • Tomomichi Mizuno

    (Graduate School of Economics, Kobe University)

Abstract

Common ownership has been observed in many industries and is believed to have a moderating effect on competition and tends to increase the proï¬ ts of ï¬ rms in which shares are held. This study challenges this common ownership characteristic. We consider a market with one upstream and two downstream ï¬ rms. One downstream ï¬ rm sells its products in two independent markets, while the other sells its products in only one of the two markets. The relationship between common ownership and input prices changes in the presence of channel asymmetry. In other words, an increase in the degree of common ownership can lead to an increase in input prices. Thus, common ownership may reduce downstream ï¬ rms’ proï¬ ts, consumer surplus, and total surplus. We also investigate whether this result is robust to several extensions.

Suggested Citation

  • Aika Monden & Tomomichi Mizuno, 2023. "Unprofitable Common Ownership with Asymmetric Distribution Channels," Discussion Papers 2317, Graduate School of Economics, Kobe University.
  • Handle: RePEc:koe:wpaper:2317
    as

    Download full text from publisher

    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2023-1/2317.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:koe:wpaper:2317. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kimiaki Shirahama (email available below). General contact details of provider: https://edirc.repec.org/data/fekobjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.