A Model of Endogenous Cross-Holdings in Oligopoly
Cheng‐Zhong Qin, Dandan Zhu, Shengping Zhang
Abstract
Cheng‐Zhong Qin, Dandan Zhu, Shengping Zhang
Abstract
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.
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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.
Key concepts: Cournot competition, Oligopoly, Pairwise comparison, Homogeneous, Economics, Microeconomics, Product differentiation, Product (mathematics)