Are The Remedies for the Common Ownership Problem Worse than the Disease?: Assessing the Likely Decision and Error Costs of Proposed Antitrust Interventions

By Thomas A. Lambert & Michael E. Sykuta – 

Antitrust scholars have recently proposed additional interventions — beyond enforcement of traditional rules on hub-and-spoke conspiracies, collusion- facilitating devices, etc. — to police anticompetitive harms purportedly resulting from institutional investors’ common ownership of small stakes in competing firms. They maintain that the current “enforcement passivity” on
common ownership is unwarranted. Additional antitrust interv...