@techreport{75fbaeb6c5b2498b93b9e32f53836674,
title = "Ownership and Control in a Competitive Industry",
abstract = "We study a differentiated product market in which an investor initially owns a controlling stake in one of two competing firms and may acquire a non-controlling or a controlling stake in a competitor, either directly using her own assets, or indirectly via the controlled firm. While industry profits are maximized within a symmetric two product monopoly, the investor attains this only in exceptional cases. Instead, she sometimes acquires a noncontrolling stake. Or she invests asymmetrically rather than pursuing a full takeover if she acquires a controlling one. Generally, she invests indirectly if she only wants to affect the product market outcome, and directly if acquiring shares is profitable per se.",
keywords = "Differentiated products, separation of ownership and control, private benefits of control",
author = "H. Karle and T.J. Klein and K.O. Stahl",
year = "2011",
language = "English",
volume = "2011-026",
series = "CentER Discussion Paper",
publisher = "Econometrics",
type = "WorkingPaper",
institution = "Econometrics",
}