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Interlocking directorates as a thrust substitute: The case of the Italian non-life insurance industry

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  • Carbonai, Davide
  • Di Bartolomeo, Giovanni

Abstract

This paper investigates the market structure of the insurance business by analyzing the (interlock) linkages among companies created by their directors. We focus on the non-life business since this is a sector relatively closed with respect to the competition with other financial activities; an absence of industry competition cannot thus be compensated by other agents. We apply the graph theory to describe the network and the principal component analysis to summarize information and verify the correlation between direct interlocking and companies’ market shares.

Suggested Citation

  • Carbonai, Davide & Di Bartolomeo, Giovanni, 2006. "Interlocking directorates as a thrust substitute: The case of the Italian non-life insurance industry," MPRA Paper 4420, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:4420
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    References listed on IDEAS

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    8. Giuseppe Turchetti & Cinzia Daraio, 2004. "How Deregulation Shapes Market Structure and Industry Efficiency: The Case of the Italian Motor Insurance Industry," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 29(2), pages 202-218, April.
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    10. repec:ucp:bkecon:9780226531083 is not listed on IDEAS
    11. Giorgio Brunello & Clara Graziano & Bruno Parigi, 1999. "Ownership or Performance: What Determines Board of Directors' Turnover in Italy?," Working Papers 1999.30, Fondazione Eni Enrico Mattei.
    12. Watts, Alison, 2001. "A Dynamic Model of Network Formation," Games and Economic Behavior, Elsevier, vol. 34(2), pages 331-341, February.
    13. Benjamin E. Hermalin & Michael S. Weisbach, 2003. "Boards of directors as an endogenously determined institution: a survey of the economic literature," Economic Policy Review, Federal Reserve Bank of New York, vol. 9(Apr), pages 7-26.
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    Citations

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    Cited by:

    1. Di Bartolomeo Anna & Di Bartolomeo Giovanni, 2007. "Integration of migrants in Italy: A simple general and objective measure," wp.comunite 0010, Department of Communication, University of Teramo.
    2. Giovanni Bartolomeo & Paolo Canofari, 2015. "Interlocking Directorates and Concentration in the Italian Insurance Market," Journal of Industry, Competition and Trade, Springer, vol. 15(4), pages 351-362, December.
    3. Davide Carbonai & Carlo Drago, 2015. "Positive Freedom in Networked Capitalism: An Empirical Analysis," Working Papers 2015.75, Fondazione Eni Enrico Mattei.
    4. Canofari Paolo & Di Bartolomeo Giovanni, 2015. "Interlocking directorates and concentration in the Italian insurance market," wp.comunite 0115, Department of Communication, University of Teramo.
    5. Di Bartolomeo Anna & Di Bartolomeo Giovanni, 2007. "Integration of migrants in Italy: A simple general and objective measure," wp.comunite 0010, Department of Communication, University of Teramo.
    6. Maria Rosa, Battaggion & Vittoria, Cerasi, 2018. "Endogenous interlocking directorates," Working Papers 380, University of Milano-Bicocca, Department of Economics, revised 01 May 2018.

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    More about this item

    Keywords

    Non-life insurance; antitrust; competition; interlocking directorates; network economics;

    JEL classification:

    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • K0 - Law and Economics - - General

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