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|Title:||Ownership and control in a competitive industry |
Klein, Tobias J.
Stahl, Konrad O.
|Issue Date:||2011 |
|Series/Report no.:||ZEW Discussion Papers 11-071|
|Abstract:||We study a differentiated product market in which an investor initially owns a controlling stake in one of two competing firms and may acquire a non-controlling or a controlling stake in a competitor, either directly using her own assets, or indirectly via the controlled firm. While industry profits are maximized within a symmetric two product monopoly, the investor attains this only in exceptional cases. Instead, she sometimes acquires a noncontrolling stake. Or she invests asymmetrically rather than pursuing a full takeover if she acquires a controlling one. Generally, she invests indirectly if she only wants to affect the product market outcome, and directly if acquiring shares is profitable per se.|
separation of ownership and control
private benefits of control
|Document Type:||Working Paper|
|Appears in Collections:||ZEW Discussion Papers|
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