Daily Archives

October 7, 2019

Student Seminar #11: Anticompetitive Effects of Common Ownership

DateTimePresenterLocation
Monday, October 07, 2019
(15 Mehr 1398)
12:30 – 13:30Esmaeil AliabadiKhatam University (@ 17 Daneshvar), 7th Floor, Seminar Room

“Many natural competitors are jointly held by a small set of large institutional investors. In the U.S. airline industry, taking common ownership into account implies increases in market concentration that are 10 times larger than what is “presumed likely to enhance market power” by antitrust authorities.1 Within‐route changes in common ownership concentration robustly correlate with route‐level changes in ticket prices, even when we only use variation in ownership due to the combination of two large asset managers. We conclude that a hidden social cost—reduced product market competition—accompanies the private benefits of diversification and good governance.”

Required Reading(s)
Anticompetitive Effects of Common Ownership

 

Student Seminar #10: How Smart Is Smart Money?

DateTimePresenterLocation
Monday, September 30, 2019
(08 Mehr 1398)
12:30 – 13:30Ramtin SalamatKhatam University (@ 17 Daneshvar), 7th Floor, Seminar Room

“I find that companies funded by more experienced VCs are more likely to go public. This follows both from the direct influence of more experienced VCs and from sorting in the market, which leads experienced VCs to invest in better companies. Sorting creates an endogeneity problem, but a structural model based on a two‐sided matching model is able to exploit the characteristics of the other agents in the market to separately identify and estimate influence and sorting. Both effects are found to be significant, with sorting almost twice as important as influence for the difference in IPO rates.”

Required Reading(s)How Smart Is Smart Money? A Two‐Sided Matching Model of Venture Capital