There is a growing interest in understanding the “ownership interests hypothesis,” i.e., whether investors holding interests in competing firms will soften firms’ incentives to compete and generate anticompetitive effects. But what do the data show? Isabel Tecu, principal at Charles River Associates and co-author of a leading study on common ownership focusing on the airlines industry, discusses her observations and insights with Anora Wang and Christina Ma. Listen to this episode to learn about the knowns and unknowns from the empirical evidence as well as implications for competition policy.
Isabel Tecu, Principal, Charles River Associates
1. José Azar, Martin C. Schmalz & Isabel Tecu, Anticompetitive Effects of Common Ownership (Working Paper, 2014)
2. Isabel Tecu, “Anticompetitive Effects of Common Ownership” at Seven Years, Antitrust Magazine, Volume 36, Issue 1 (Fall 2021)
Anora Wang, Arnold & Porter and Christina Ma, Wachtell, Lipton, Rosen & Katz