

Does Common Ownership Really Prompt Managers to Compete Less?
How common ownership affects competition is a source of acute disagreement among scholars and policymakers, with some who believe common ownership depresses competition seeking antitrust law reforms that would significantly constrain how investment funds operate. Neglected in this vigorous debate, however, is a careful analysis of how firm managers – the persons who in the first instance actually make the decisions that determine an industry’s competitiveness – would act differently in the presence of common ownership.
We conduct that necessary analysis in a new article, available here, in which we combine lessons from corporate governance scholarship and industrial organization … Read more