Investment

The practice of common ownership has become far more common in recent decades to the extent that the same top 5 shareholders control the 6 largest US airlines. In this video, YULIYAN MITKOV analyzes the effects of common ownership and its potential anti competitive impact. Employing a theoretical model which is then tested with data, Mitkov’s research shows that common ownership is likely to have anti competitive effects when corporate governance is weak. The model developed is of significant interest to antitrust authorities. Future work will explore how the observed effects vary under different styles of common ownership and with other types of agency cost.