Economics, Econometrics and Finance
3 years ago

Partial ownership boosts competition, lowers prices, and benefits consumers.

1 view
Economics Letters
Partial passive ownership holdings and licensing
Stefanos Leonardos, Emmanuel Petrakis, Panagiotis Skartados, Giorgos Stamatopoulos

Paper Summary

A company owning a cost-saving technology and a small part of its competitor can lead to sharing the technology for a fee, benefiting consumers and society. This shows that having partial ownership in a rival can actually promote competition and help everyone.

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