ECON Webinar - Revisiting the Anticompetitive Effects of Common Ownership

4:00pm - 5:30pm
https://hkust.zoom.us/j/9687909998?pwd=NnhpOUVlZC9MeTA1c1IrWnh5SGhLQT09

We use data from the U.S. airline industry to test the hypothesis, consistent with the general equilibrium oligopoly model of Azar and Vives (forthcoming), that inter-industry common ownership should be associated with lower prices in product markets. We find that, as the model predicts, increases over time in intra-industry common ownership are associated with higher prices, while increases in inter-industry common ownership are associated with lower prices. An event study using the BlackRock-BGI acquisition shows that, where the acquisition generated a substantial increase in inter-industry common ownership, it caused airline prices to decline. We also find that common ownership by the "Big Three'' (BlackRock, Vanguard and State Street) is associated with lower airline prices, while common ownership by shareholders other than the Big Three is associated with higher prices. The results highlight the limitations of partial equilibrium oligopoly theory in the context of common ownership, and the need to consider a general equilibrium perspective.

场地开放时间
4:00pm
讲者/ 表演者:
Prof. José Azar
University of Navarra

https://www.iese.edu/faculty-research/faculty/jose-azar/

语言
英文
适合对象
校友
教职员
研究生
主办单位
经济学系
联系方法

Julie Wong (email: fnjuwong@ust.hk)

新增活动
请各校内团体将活动发布至大学活动日历。