IDEAS home Printed from https://ideas.repec.org/a/bla/jindec/v72y2024i4p1360-1368.html
   My bibliography  Save this article

Downstream Cross‐Holdings and Upstream R&D: A Comment

Author

Listed:
  • Yake Jin
  • Arijit Mukherjee
  • Chenhang Zeng

Abstract

According to Hu et al. [Journal of Industrial Economics, 70(3), pp. 775–789], downstream cross‐holdings are permissible based on the social welfare standard if the investment technology in the upstream sector is highly inefficient. However, the conclusion of that paper relies on a definition of downstream producer surplus that is not so commonly found in the literature. After using a more commonly found definition of downstream producer surplus, this note demonstrates that downstream cross‐holdings have detrimental impacts on both consumer surplus and social welfare, emphasizing the need for efficient and effective regulations on downstream cross‐holdings in Hu et al. [Journal of Industrial Economics, 70(3), pp. 775–789] type economy.

Suggested Citation

  • Yake Jin & Arijit Mukherjee & Chenhang Zeng, 2024. "Downstream Cross‐Holdings and Upstream R&D: A Comment," Journal of Industrial Economics, Wiley Blackwell, vol. 72(4), pages 1360-1368, December.
  • Handle: RePEc:bla:jindec:v:72:y:2024:i:4:p:1360-1368
    DOI: 10.1111/joie.12391
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/joie.12391
    Download Restriction: no

    File URL: https://libkey.io/10.1111/joie.12391?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Wilson A. Alley, 1997. "Partial Ownership Arrangements and Collusion in the Automobile Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 45(2), pages 191-205, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fanti, Luciano, 2013. "Cross-ownership and unions in a Cournot duopoly: When profits reduce with horizontal product differentiation," Japan and the World Economy, Elsevier, vol. 27(C), pages 34-40.
    2. Juan Carlos Bárcena‐Ruiz & Amagoia Sagasta, 2021. "Cross‐ownership and corporate social responsibility," Manchester School, University of Manchester, vol. 89(4), pages 367-384, July.
    3. Chen, Jiguang & Hu, Qiying & Song, Jing-Sheng, 2017. "Effect of partial cross ownership on supply chain performance," European Journal of Operational Research, Elsevier, vol. 258(2), pages 525-536.
    4. Mukherjee, Arijit, 2023. "Merger and product innovation under cross ownership and cooperative R&D," Economics Letters, Elsevier, vol. 233(C).
    5. Rupayan Pal, 2010. "How much should you own? Cross-ownership and privatization," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2010-015, Indira Gandhi Institute of Development Research, Mumbai, India.
    6. Rasha Ahmed & Kathleen Segerson, 2007. "Emissions Control and the Regulation of Product Markets: The Case of Automobiles," Working papers 2007-40, University of Connecticut, Department of Economics.
    7. Davallou , Maryam & Soltaninejad , Mohammad & Tahmasebi , Ali, 2015. "Analyzing the Aspects of Cross Sharing Ownership," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 10(1), pages 83-106, January.
    8. repec:ehu:ikerla:6367 is not listed on IDEAS
    9. Arijit Mukherjee, 2023. "Losses from cross-holdings in a duopoly with convex cost and strategic input price determination," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 11(1), pages 81-91, April.
    10. Zevgolis Nikolaos E. & Fotis Panagiotis N., 2019. "A Rule of Reason Approach for Passive Minority Interests within the European Union," Review of Law & Economics, De Gruyter, vol. 15(3), pages 1-41, November.
    11. Serbera, Jean-Philippe & Fry, John, 2017. "Takeover incentives and defence with Cross Partial Ownerships," MPRA Paper 82074, University Library of Munich, Germany.
    12. Ono, Hiroshi & Nakazato, Takuya & Davis, Colin & Alley, Wilson, 2004. "Partial ownership arrangements in the Japanese automobile industry; 1990-2000," Journal of Applied Economics, Universidad del CEMA, vol. 7(2), pages 1-13, November.
    13. Choi, Byong-Sam & Ahn, Byong-Hun & Park, Yong-Sam, 2003. "Cross ownership of wireline and wireless communications carriers: synergy or collusion?," Information Economics and Policy, Elsevier, vol. 15(4), pages 485-499, December.
    14. Luciano Fanti, 2011. "Cross-participated firms and welfare," Discussion Papers 2011/127, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    15. Niklas Potrafke, 2007. "Social Security in Germany: A Prey of Political Opportunism?," Discussion Papers of DIW Berlin 677, DIW Berlin, German Institute for Economic Research.
    16. Benndorf, Volker & Odenkirchen, Johannes, 2021. "An experiment on partial cross-ownership in oligopolistic markets," International Journal of Industrial Organization, Elsevier, vol. 78(C).
    17. Patricia Charléty & Marie-Cécile Fagart & Saïd Souam, 2009. "Incentives for Partial Acquisitions and Real Market Concentration," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 165(3), pages 508-534, September.
    18. Luciano Fanti, 2014. "Welfare effects of cross-ownership in a unionised duopoly," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2014(2), pages 21-41.
    19. Tsuritani, Ryosuke, 2023. "Strategic Input Price Discrimination with Horizontal Shareholding," MPRA Paper 121176, University Library of Munich, Germany.
    20. Erik Lundin, 2021. "Market Power and Joint Ownership: Evidence from Nuclear Plants in Sweden," Journal of Industrial Economics, Wiley Blackwell, vol. 69(3), pages 485-536, September.
    21. Rupayan Pal, 2010. "How Much Should You Own? Cross-ownership and Privatization," Working Papers id:2810, eSocialSciences.

    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:bla:jindec:v:72:y:2024:i:4:p:1360-1368. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821 .

    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.