Yake Jin
Downstream cross-holdings and upstream R&D: A comment
Jin, Yake; Mukherjee, Arijit; Zeng, Chenhang
Authors
Abstract
According to Hu et al. [Journal of Industrial Economics, 70(3), pp. 775–789], downstream cross-holdings are permissible based on the social welfare standard if the investment technology in the upstream sector is highly inefficient. However, the conclusion of that paper relies on a definition of downstream producer surplus that is not so commonly found in the literature. After using a more commonly found definition of downstream producer surplus, this note demonstrates that downstream cross-holdings have detrimental impacts on both consumer surplus and social welfare, emphasizing the need for efficient and effective regulations on downstream cross-holdings in Hu et al. [Journal of Industrial Economics, 70(3), pp. 775–789] type economy.
Citation
Jin, Y., Mukherjee, A., & Zeng, C. (2024). Downstream cross-holdings and upstream R&D: A comment. Journal of Industrial Economics, https://doi.org/10.1111/joie.12391
Journal Article Type | Article |
---|---|
Acceptance Date | Mar 8, 2024 |
Online Publication Date | Mar 27, 2024 |
Publication Date | Mar 27, 2024 |
Deposit Date | Mar 22, 2024 |
Publicly Available Date | Mar 28, 2026 |
Journal | Journal of Industrial Economics |
Print ISSN | 0022-1821 |
Electronic ISSN | 1467-6451 |
Publisher | Wiley |
Peer Reviewed | Peer Reviewed |
DOI | https://doi.org/10.1111/joie.12391 |
Keywords | cross-holdings; incentive; welfare effect; competition policy |
Public URL | https://nottingham-repository.worktribe.com/output/32751898 |
Publisher URL | https://onlinelibrary.wiley.com/doi/10.1111/joie.12391 |
Additional Information | This is the peer reviewed version of the following article: Jin, Y., Mukherjee, A. and Zeng, C. (2024), Downstream Cross-Holdings and Upstream R&D: A Comment†. J Ind Econ., which has been published in final form at https://doi.org/10.1111/joie.12391. The article must be linked to Wiley’s version of record on Wiley Online Library |
Files
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