Non-Controlling Minority Shareholdings and Collusion

De Haas S, Paha J (2021)

Publication Type: Journal article

Publication year: 2021

Journal

Review of Industrial Organization Springer Verlag (Germany)

Book Volume: 58

Pages Range: 431-454

Journal Issue: 3

DOI: 10.1007/s11151-020-09758-y

Abstract

This article merges theoretical literature on non-controlling minority shareholdings (NCMS) in a coherent model to study the effects of NCMS on competition and collusion. The model encompasses both the case of a common owner holding shares of rival firms as well as the case of cross ownership among rivals. We find that by softening competition, NCMS weaken the sustainability of collusion under a greater variety of situations than was indicated by earlier literature. Such effects exist, in particular, in the presence of an effective competition authority.

Authors with CRIS profile

Johannes Paha

Involved external institutions

Justus-Liebig-Universität Gießen DE Germany (DE)

How to cite

APA:

De Haas, S., & Paha, J. (2021). Non-Controlling Minority Shareholdings and Collusion. Review of Industrial Organization, 58(3), 431-454. https://dx.doi.org/10.1007/s11151-020-09758-y

MLA:

De Haas, Samuel, and Johannes Paha. "Non-Controlling Minority Shareholdings and Collusion." Review of Industrial Organization 58.3 (2021): 431-454.

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