- ECONOMICS LETTERS Journal
- March 2022
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- We study the portfolio selection of large investors who own equity of the firms competing in a symmetric oligopoly. An investor's objective is to maximize the value of its portfolio accounting for the impact of its interests on the managerial incentives. We show that in a stationary equilibrium the portfolios of large investors soften competition, increasing the price markup and profits.
- market power; common ownership; minority equity; portfolio selection