The dominant formulation for modeling the objective function of the firm's manager in the presence of horizontal shareholding has been critiqued for producing the result that it may solely reflect the interests of a small number of shareholders even if, collectively, those shareholders do not...

Horizontal shareholdings exist when a common set of investors own significant shares in corporations that are horizontal competitors in a product market. Economic models show that substantial horizontal shareholdings are likely to anticompetitively raise prices when the owned businesses compete...