There is a growing concern that minority shareholding (MS) in rival firms may facilitate collusion. To examine this concern, we exploit the fact that leniency programs (LPs) are generally recognized as a shock that destabilizes collusive agreements and study the effect that the introduction of...

This paper shows how competing firms can facilitate tacit collusion by making passive investments in rivals. In general, the incentives of firms to collude depend in a complex way on the whole set of partial cross ownership (PCO) in the industry. We show that when firms are identical, only...

We examine the implications of pre-grant publication (PP) of patent applications in the context of a cumulative innovation model. We show that pre-grant publication of patents lead to fewer applications and fewer inventions, but it raises the probability that new technologies will reach the...