We study quality-enhancing R&D, price competition, and welfare in markets with asymmetric passive partial ownership (PPO) holdings. The asymmetries in PPOs generate a positive re-allocation effect which, in some cases, can increase consumer and total surplus in markets with no spillovers. There exists a positive re-allocation effect that increases aggregate utility.

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Bayona Font, Anna; Lpez , ngel L.

Silent financial interests and product innovation

09/2018
We study quality-enhancing R&D, price competition, and welfare in markets with asymmetric passive partial ownership (PPO) holdings. The asymmetries in PPOs generate a positive re-allocation effect which, in some cases, can increase consumer and total surplus in markets with no spillovers. There exists a positive re-allocation effect that increases aggregate utility.
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Silent financial interests and product innovation
Bayona Font, Anna; Lpez , ngel L.
Economics Letters
Vol. 170, n -, 09/2018, p. 109 - 112

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