Welfare Consequence of Common Ownership in a Vertically Related Market*

• DOI: 10.1111/joie.12380
• Publication Date: 2023-12-27T11:26:12Z
• Authors: Linfeng Chen; Toshihiro Matsumura; Chenhang Zeng
• Keywords: Product Differentiation; Common ownership

We investigate how common ownership affects welfare in a vertically related market. Although mitigates the double marginalization problem and improves welfare, it restricts competition among downstream firms harms welfare. find that whether is welfare‐improving depends on degree of competitiveness Common more likely to improve when there are fewer greater product differentiation. In other words, may market weak.