This paper considers cost-reducing R&D investment with spillovers in a Cournot oligopoly with overlapping ownership. We show that overlapping ownership leads to internalization of rivals profits by firms and find that, for demand not too convex, increases in overlapping ownership increase...

In the context of supply function competition with private information, we test in the laboratory whether, as predicted in Bayesian equilibrium, costs that are positively correlated lead to steeper supply functions and less competitive outcomes than do uncorrelated costs. We find that the...