Partial cross ownership and tacit collusion

David Gilo; Yossi Moshe; Yossi Spiegel

doi:10.1111/j.1756-2171.2006.tb00005.x

Partial cross ownership and tacit collusion

David Gilo
, Yossi Moshe
, Yossi Spiegel

Department of Mathematics

Research output: Contribution to journal › Review article › peer-review

205 Scopus citations

Abstract

We examine the effects that passive investments in rival firms have on the incentives of firms to engage in tacit collusion. In general, these incentives depend in a complex way on the entire partial cross ownership (PCO) structure in the industry. We establish necessary and sufficient conditions for PCO arrangements to facilitate tacit collusion and also examine how tacit collusion is affected when firms' controllers make direct passive investments in rival firms.

Original language	English
Pages (from-to)	81-99
Number of pages	19
Journal	RAND Journal of Economics
Volume	37
Issue number	1
DOIs	https://doi.org/10.1111/j.1756-2171.2006.tb00005.x
State	Published - 1 Jan 2006

ASJC Scopus subject areas

Economics and Econometrics

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10.1111/j.1756-2171.2006.tb00005.x

Cite this

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AB - We examine the effects that passive investments in rival firms have on the incentives of firms to engage in tacit collusion. In general, these incentives depend in a complex way on the entire partial cross ownership (PCO) structure in the industry. We establish necessary and sufficient conditions for PCO arrangements to facilitate tacit collusion and also examine how tacit collusion is affected when firms' controllers make direct passive investments in rival firms.

UR - https://www.scopus.com/pages/publications/33745710497

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DO - 10.1111/j.1756-2171.2006.tb00005.x

M3 - Review article

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Partial cross ownership and tacit collusion

Abstract

ASJC Scopus subject areas

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