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Product positioning with overlapping ownership

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  • Li, Youping
  • Zhang, Jianhu

Abstract

This paper investigates the duopoly firms’ positioning strategies when they have overlapping ownership. We find that the firms position themselves further away from each other to soften competition as the degree of overlapping ownership increases. This increases firm profits but reduces consumer and total welfare. The anticompetitive effect of overlapping ownership is exacerbated with the additional choice of product positioning.

Suggested Citation

  • Li, Youping & Zhang, Jianhu, 2021. "Product positioning with overlapping ownership," Economics Letters, Elsevier, vol. 208(C).
    • Handle: RePEc:eee:ecolet:v:208:y:2021:i:c:s0165176521003359
    DOI: 10.1016/j.econlet.2021.110058
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    References listed on IDEAS

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    Cited by:

    1. Jing Fang & Jingyi Huang & Chenhang Zeng, 2024. "Passive cross‐holdings, horizontal differentiation, and welfare," Bulletin of Economic Research, Wiley Blackwell, vol. 76(2), pages 508-528, April.
    2. Jiancai Pi & Pengqing Zhang, 2024. "Platform competition with common ownership," Journal of Economics, Springer, vol. 142(3), pages 247-265, August.
    3. Li, Youping & Zhang, Jianhu & Zhou, Zipeng, 2023. "Vertical differentiation with overlapping ownership," Economics Letters, Elsevier, vol. 222(C).

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    More about this item

    Keywords

    Overlapping ownership; Product positioning; Welfare;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • G3 - Financial Economics - - Corporate Finance and Governance

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