Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
We model an industry where a subset of firms is interlinked via a reciprocal and symmetric share exchange agreement. Under quantity competition, a merger aiming at acquisition of market power can be reproduced by the same firms under a symmetric cross-ownership scheme. Under linear demand, a non-controlling symmetric cross-ownership scheme is always advantageous to its members if at least (2−2)(1+n) firms in an n-firm industry participate. The threshold drops to (1+n)/2 for relatively low levels of cross-ownership. Cross-ownership schemes require fewer participants than mergers to be advantageous and can be more profitable than equal size mergers. Unlike mergers, a unique stable scheme exists.