Free entry under common ownership

C-Tier
Journal: Economics Letters
Year: 2020
Volume: 195
Issue: C

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This study investigates the equilibrium and welfare properties of free entry under common ownership. We formulate a model in which incumbents under common ownership choose whether to enter a new market. Using a circular-market model, we find that an increase in common ownership reduces entries, which may or may not improve welfare. Welfare has an inverted-U shaped relationship with the degree of common ownership, which implies that there is a strictly positive optimal degree of common ownership.

Technical Details

RePEc Handle
repec:eee:ecolet:v:195:y:2020:i:c:s0165176520303013
Journal Field
General
Author Count
2
Added to Database
2026-01-25