變局與挑戰—貿易政策與產業組織研究群
研討日期 Date, time	2025-09-01 T 10:30-12:00
研討地點 Location	國立臺灣大學社會科學院710會議室 Room 710, College of Social Science, NTU
主講題目 Title of the paper	Endogenous equity shares in duopoly markets with product differentiation
作者 Authors of the paper	Yi Li
文獻出處 Journal, vol.(issue), pp	Canadian Journal of Economics Volume 58, Issue 1, February 2025, Pages 227-246
主講人 Presenter	Micah Mainala
參加人員 Participants	黃鴻，王光正，施姵全，彭正浩，郭文忠，張瑞雲，林晏如，Micah Mainala，楊雅棠，蕭溙辰
摘要 Abstract of the Paper	Firms can form partial passive ownership arrangements by acquiring equity shares in competitors’ profits. We consider a duopoly model in which products are differentiated along both vertical and horizontal dimensions and one firm may acquire the other firm’s equity shares before they engage in strategic competition. We identify equilibrium equity shares and characterize how the choice of equity shares depends on three previously unexplored factors: (i) the size of the market, (ii) the degree of horizontal product differentiation and (iii) the degree of vertical product differentiation. Whether an increase in the size of the market increases firm’s incentive to hold a stake in the rival depends on whether the acquiring firm is a high-quality firm or a low-quality firm. The effect of vertical product differentiation also depends on the type of the acquiring firm, high-quality vis-à-vis low-quality. On the contrary, an increase in horizontal product differentiation can increase firm’s incentive to hold a stake in the rival, irrespective of the type of the acquiring firm. We also find that the equilibrium levels of consumer welfare and social welfare may be lower compared to the case of no partial passive ownership.