This paper analyzes the choice to interlock, that is, the decision to have an executive sitting in the board of the rival company. This choice is analyzed within a duopoly where firms with hidden marginal costs of production compete in the product market. Interlocking directorates may emerge as...

We study the relationship between the acquisition of partial equity ownership and interlocking directorates among rival companies. Partial equity ownership between rivals in the product market is convenient, even in the case of passive participation, since, internalizing competition, raises the...