Partial Cross Ownership and Tacit Collusion : A Comment

The coordinated competitive effects of silent ownerships in rival firms have been studied recently in the context of an infinitely repeated Bertrand oligopoly model by Gilo and Spiegel (2003). Focusing on their investigation, the purpose of the present note is two-fold, to provide a general comparative static result and to examine to what extent their findings are compatible with a more general scenario in which no restriction is placed on the levels of reciprocal ownership stakes