Duopoly competition with competitor partial ownership [documento eletrónico] / Duarte Brito, Luís Cabral, Helder Vasconcelos

BRITO, Duarte; CABRAL, Luís, co-autor; VASCONCELOS, Helder, 1972-, co-autor

[s.l.: s.n.], 2010

"Owning a share of a competitor's stock lessens the degree of oligopoly
competition. In this paper, we explore this theme by considering dif-
ferent forms of ownership (voting and non-voting shares) as well as
different divestiture options. Among other results, we show that turn-
ing voting shares into non-voting shares increases consumer surplus;
and selling the voting shares to a large shareholder is better than sell-
ing it to small shareholders. Perhaps more surprisingly, we provide
conditions such that a partial sale of voting shares is worse than turn-
ing those shares into non-voting shares and ever worse than not doing
anything."

Economia

Economia; Política-Económica; Política-Comercial; Competitividade

33

2010

Multimédia

ENG