A Model of Endogenous Cross-Holdings in Oligopoly
Cheng-Zhong Qin , Dandan Zhu , Shengping Zhang
Front. Econ. China ›› 2017, Vol. 12 ›› Issue (3) : 465 -479.
A Model of Endogenous Cross-Holdings in Oligopoly
A network approach is proposed to analyze the formation of cross-holdings and anti-competitive implications. Our approach is motivated by the bilateral arrangement of passive ownership between Microsoft and Apple in 1997. We provide a complete characterization of pairwise stable cross-holdings for a model of Cournot oligopoly with a homogeneous product. Our results strengthen the competitive implications of endogenous cross-holdings in Cournot oligopoly found in the literature.
cross-holding / Cournot equilibrium / oligopoly / pairwise stability
Higher Education Press
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