Ownership and control in a competitive industry


Karle, Heiko ; Klein, Tobias J. ; Stahl, Konrad


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URL: https://ub-madoc.bib.uni-mannheim.de/29939
URN: urn:nbn:de:bsz:180-madoc-299394
Document Type: Working paper
Year of publication: 2011
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > Zentrum für Europ. Wirtschaftsforschung (ZEW)
MADOC publication series: Veröffentlichungen des ZEW (Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: L13 , L41,
Subject headings (SWD): Investition , Produktdifferenzierung , Corporate Governance , Unvollkommener Markt , Theorie
Keywords (English): Differentiated products , separation of ownership and control , private benefits of control
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.

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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