Ownership and Control in a Competitive Industry
Copyright policy )Ownership and Control in a Competitive Industry
We study a differentiated product market in which an investor initially owns a controlling stake in one of two competing firms and may acquire a non-controlling or a controlling stake in a competitor, either directly using her own assets, or indirectly via the controlled firm. While industry profits are maximized within a symmetric two product monopoly, the investor attains this only in exceptional cases. Instead, she sometimes acquires a noncontrolling stake. Or she invests asymmetrically rather than pursuing a full takeover if she acquires a controlling one. Generally, she invests indirectly if she only wants to affect the product market outcome, and directly if acquiring shares is profitable per se.
- University of Bonn Germany
- Tilburg University Netherlands
- University of Mannheim Germany
- Frankfurt School of Finance & Management Germany
- Institute for the Study of Labor Germany
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differentiated products, L13, 330, Differentiated products; private benefits of control; separation of ownership and control, ddc:330, L41, Differentiated products;separation of ownership and control;private benefits of control, Investition, Unvollkommener Markt, Produktdifferenzierung, private benefits, Corporate Governance, Differentiated products; separation of ownership and control; private benefits of control, differentiated products, separation of ownership and control, private benefits of control, differentiated products,separation of ownership and control,private benefits of control, private benefits of control, Differentiated products, separation of ownership and control, private benefits of control, Theorie, separation of ownership and control, Differentiated products, jel: jel:L41, jel: jel:L13
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