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Overlapping ownership, pass-through, and product differentiation

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  • Lømo, Teis Lunde

Abstract

Overlapping ownership can lead firms to raise prices, but what determines the magnitude of this effect? I study how the price effect of overlapping ownership depends on demand and cost conditions and the degree of product differentiation in a Bertrand oligopoly. I do so by extending Weyl and Fabinger’s (2013) conduct parameter approach which highlights the importance of pass-through.

Suggested Citation

  • Lømo, Teis Lunde, 2024. "Overlapping ownership, pass-through, and product differentiation," Economics Letters, Elsevier, vol. 237(C).
    • Handle: RePEc:eee:ecolet:v:237:y:2024:i:c:s0165176524001113
    DOI: 10.1016/j.econlet.2024.111628
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    References listed on IDEAS

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    More about this item

    Keywords

    Overlapping ownership; Oligopoly; Conduct parameter; Pass-through; Product differentiation;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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