Anticompetitive Effects of Common Ownership

  title={Anticompetitive Effects of Common Ownership},
  author={Jos{\'e} Azar and Martin C. Schmalz and Isabel Tecu},
  journal={Law \& Society: Public Law eJournal},
Many natural competitors are jointly held by a small set of large institutional investors. In the U.S. airline industry, taking common ownership into account implies increases in market concentration that are 10 times larger than what is “presumed likely to enhance market power” by antitrust authorities. Within‐route changes in common ownership concentration robustly correlate with route‐level changes in ticket prices, even when we only use variation in ownership due to the combination of two… Expand
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