Seminar in hybrid format at GERAD room 4488 or Zoom

This paper investigates the effects of cross-ownership structures among firms in a renewable resource industry. We build on previous research to analyze a k-symmetric cross-ownership model where k firms hold equal financial stakes in each other while remaining independent from n-k other firms.

The study finds that cross-ownership can enhance aggregate profits and social welfare by allowing firms to coordinate their production strategies more effectively. We argue that traditional antitrust policies, which often view cross-ownership as detrimental, may overlook the potential benefits in renewable resource contexts. We emphasize the importance of considering the dynamics of resource stocks and the long-term implications of cross-ownership when formulating regulatory policies. (With Miao Dai and Hassan Benchekroun)