Downstream cross-holdings and divestment incentives under bilateral bargaining
(2024)
Journal Article
Mukherjee, A., & Zeng, C. (2024). Downstream cross-holdings and divestment incentives under bilateral bargaining. Economics Letters, 242, Article 111895. https://doi.org/10.1016/j.econlet.2024.111895
We study the stability of downstream cross-holdings in a bilateral duopoly with firm-specific bargaining. We show that the downstream firms never (partially, completely) divest shares if the upstream firms have significant (medium, low) bargaining po... Read More about Downstream cross-holdings and divestment incentives under bilateral bargaining.