Passive cross holding as a strategic entry deterrence

C-Tier
Journal: Economics Letters
Year: 2015
Volume: 134
Issue: C
Pages: 37-40

Authors (3)

Li, Sanxi (not in RePEc) Ma, Hongkun (not in RePEc) Zeng, Chenhang (Zhongnan University of Economi...)

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

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

Abstract

This paper builds a duopoly model to study the strategic effects of cross holding on entry deterrence. We show that, in equilibrium, the incumbent optimally chooses strictly positive cross holdings in each other to deter entry for the potential entrant.

Technical Details

RePEc Handle
repec:eee:ecolet:v:134:y:2015:i:c:p:37-40
Journal Field
General
Author Count
3
Added to Database
2026-01-29