Overlapping ownership and input prices

IF 1.7 3区经济学 Q2 ECONOMICS

International Journal of Industrial Organization Pub Date : 2024-03-25 DOI:10.1016/j.ijindorg.2024.103067

Teis Lunde Lømo

引用次数: 0

Abstract

This paper studies the effect of overlapping ownership in a setting where firms must contract with an input supplier before competing in the product market. Horizontal ownership among the competing firms can here affect the input prices set by the supplier. I derive conditions for when overlapping ownership raises, reduces, or has no effect on input prices. The key factor is how demand curvature varies with total output. When overlapping ownership reduces input prices, the cost reduction is in turn passed on to consumers. This indirect effect offsets – and can even outweigh – the direct negative effect of overlapping ownership on product market competition.

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所有权和投入价格重叠

本文研究了企业在产品市场竞争之前必须与投入品供应商签订合同的情况下重叠所有权的影响。竞争企业之间的横向所有权会影响供应商设定的投入价格。我推导出了重叠所有权何时会提高、何时会降低、何时不会影响投入品价格的条件。关键因素在于需求曲线如何随总产出变化。当重叠所有权降低投入品价格时，成本的降低又会转嫁给消费者。这种间接影响可以抵消，甚至超过所有权重叠对产品市场竞争的直接负面影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Industrial Organization ECONOMICS-

CiteScore

2.50

自引率

6.70%

发文量

审稿时长

77 days

期刊介绍： The IJIO is an international venture that aims at full coverage of theoretical and empirical questions in industrial organization. This includes classic questions of strategic behavior and market structure. The journal also seeks to publish articles dealing with technological change, internal organization of firms, regulation, antitrust and productivity analysis. We recognize the need to allow for diversity of perspectives and research styles in industrial organization and we encourage submissions in theoretical work, empirical work, and case studies. The journal will also occasionally publish symposia on topical issues.