Oligopolies Collude Through Passive Ownership, Stifling Competition Worldwide
The scientists investigated cross-ownership between companies to see how it affects competition. They looked at Microsoft and Apple's agreement in 1997 and created a plan to study how companies owning parts of each other can impact the market. By analyzing a model of businesses selling similar products, they found that these cross-ownership deals can make competition in the market stronger. Overall, cross-ownership can have significant effects on how companies compete with each other in industries.