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Horizontal Partial Cross Ownership and Innovation*.

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Title: Horizontal Partial Cross Ownership and Innovation*.
Authors: Shelegia, Sandro1,2 (AUTHOR) Sandro.Shelegia@upf.edu, Spiegel, Yossi2,3,4 (AUTHOR) spiegel@post.tau.ac.il
Source: Journal of Industrial Economics. Dec2024, Vol. 72 Issue 4, p1397-1450. 54p.
Subjects: Direct costing, Prices, Consumers, Externalities, Symmetry
Abstract: We study the effects of partial cross ownership (PCO) among rival firms on their incentives to innovate. PCO in our model gives rise to a price effect due to its effect on price competition and hence on the marginal benefit from investment, as well as a cannibalization effect which arises because each firm internalizes part of the negative externality of its investment on the rival's profit. We show that overall, PCO may benefit or harm consumers depending on the size of the PCO stakes, their degree of symmetry, the size of the innovation, its marginal cost, and whether it is drastic or not. [ABSTRACT FROM AUTHOR]
Copyright of Journal of Industrial Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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PubType: Academic Journal
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  Data: Horizontal Partial Cross Ownership and Innovation*.
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  Data: <searchLink fieldCode="AR" term="%22Shelegia%2C+Sandro%22">Shelegia, Sandro</searchLink><relatesTo>1,2</relatesTo> (AUTHOR)<i> Sandro.Shelegia@upf.edu</i><br /><searchLink fieldCode="AR" term="%22Spiegel%2C+Yossi%22">Spiegel, Yossi</searchLink><relatesTo>2,3,4</relatesTo> (AUTHOR)<i> spiegel@post.tau.ac.il</i>
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  Data: <searchLink fieldCode="JN" term="%22Journal+of+Industrial+Economics%22">Journal of Industrial Economics</searchLink>. Dec2024, Vol. 72 Issue 4, p1397-1450. 54p.
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  Data: <searchLink fieldCode="DE" term="%22Direct+costing%22">Direct costing</searchLink><br /><searchLink fieldCode="DE" term="%22Prices%22">Prices</searchLink><br /><searchLink fieldCode="DE" term="%22Consumers%22">Consumers</searchLink><br /><searchLink fieldCode="DE" term="%22Externalities%22">Externalities</searchLink><br /><searchLink fieldCode="DE" term="%22Symmetry%22">Symmetry</searchLink>
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  Data: We study the effects of partial cross ownership (PCO) among rival firms on their incentives to innovate. PCO in our model gives rise to a price effect due to its effect on price competition and hence on the marginal benefit from investment, as well as a cannibalization effect which arises because each firm internalizes part of the negative externality of its investment on the rival's profit. We show that overall, PCO may benefit or harm consumers depending on the size of the PCO stakes, their degree of symmetry, the size of the innovation, its marginal cost, and whether it is drastic or not. [ABSTRACT FROM AUTHOR]
– Name: AbstractSuppliedCopyright
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  Data: <i>Copyright of Journal of Industrial Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
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        Value: 10.1111/joie.12392
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      – Code: eng
        Text: English
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      Pagination:
        PageCount: 54
        StartPage: 1397
    Subjects:
      – SubjectFull: Direct costing
        Type: general
      – SubjectFull: Prices
        Type: general
      – SubjectFull: Consumers
        Type: general
      – SubjectFull: Externalities
        Type: general
      – SubjectFull: Symmetry
        Type: general
    Titles:
      – TitleFull: Horizontal Partial Cross Ownership and Innovation*.
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            NameFull: Spiegel, Yossi
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            – D: 01
              M: 12
              Text: Dec2024
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              Y: 2024
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