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Frontiers of Economics in China

ISSN 1673-3444

ISSN 1673-3568(Online)

CN 11-5744/F

Postal Subscription Code 80-978

Front. Econ. China    2017, Vol. 12 Issue (3) : 465-479    https://doi.org/10.3868/s060-006-017-0020-6
Orginal Article |
A Model of Endogenous Cross-Holdings in Oligopoly
Cheng-Zhong Qin1(), Dandan Zhu2(), Shengping Zhang3()
1. Department of Economics, University of California, Santa Barbara, CA 93106-9210, USA
2. Department of Economics, University of California, Santa Barbara, CA 93106-9210, USA
3. Guanghua School of Management, Peking University, Beijing 100871, China
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Abstract

A network approach is proposed to analyze the formation of cross-holdings and anti-competitive implications. Our approach is motivated by the bilateral arrangement of passive ownership between Microsoft and Apple in 1997. We provide a complete characterization of pairwise stable cross-holdings for a model of Cournot oligopoly with a homogeneous product. Our results strengthen the competitive implications of endogenous cross-holdings in Cournot oligopoly found in the literature.

Keywords cross-holding      Cournot equilibrium      oligopoly      pairwise stability     
Issue Date: 19 September 2017
 Cite this article:   
Cheng-Zhong Qin,Dandan Zhu,Shengping Zhang. A Model of Endogenous Cross-Holdings in Oligopoly[J]. Front. Econ. China, 2017, 12(3): 465-479.
 URL:  
http://academic.hep.com.cn/fec/EN/10.3868/s060-006-017-0020-6
http://academic.hep.com.cn/fec/EN/Y2017/V12/I3/465
[1] Bingyong Zheng. A Theory of Mergers and Merger Waves[J]. Front Econ Chin, 2012, 7(2): 193-217.
[2] SUN Qunyan, LI Jie, ZHANG Anming. SOE Reform under Oligopolistic Market Structure: The Optimal Choice of State Shares[J]. Front. Econ. China, 2006, 1(1): 39-47.
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