The impact on market outcomes of the portfolio selection of large equity investors

C-Tier
Journal: Economics Letters
Year: 2022
Volume: 212
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

We study the portfolio selection of large investors who own equity of the firms competing in a symmetric oligopoly. An investor’s objective is to maximize the value of its portfolio accounting for the impact of its interests on the managerial incentives. We show that in a stationary equilibrium the portfolios of large investors soften competition, increasing the price markup and profits.

Technical Details

RePEc Handle
repec:eee:ecolet:v:212:y:2022:i:c:s0165176522000143
Journal Field
General
Author Count
2
Added to Database
2026-01-26