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Betting on both sides: measuring common ownership of competing firms in Australia

PLEASE NOTE: THE DATE FOR THIS EVENT HAS CHANGED.
Crawford School of Public Policy | Arndt-Corden Department of Economics
https://www.flickr.com/photos/102587886@N07/9851732664/

Event details

ACDE Seminar

Date & time

Thursday 10 December 2020
2.00pm–3.30pm

Venue

Online via Zoom

Speaker

Adam Triggs, Australian National University

Contacts

Associate Professor Paul Burke

Please note: The date for this event has changed.

The seminar provides the first estimates of the extent of common ownership of competing firms in Australia. Combining data on market shares and significant shareholdings, the study calculates the impact of common ownership on effective market concentration. Among firms where the study can identify at least one owner, 31 per cent share a significant owner with a rival company. Analysing 443 industries, the study identifies 49 that exhibit common ownership, including commercial banking, explosives manufacturing, fuel retailing, insurance and iron ore mining.

Across the Australian economy, common ownership increases effective market concentration by 21 per cent. The estimates imply that listed firms place the same value on $3.70 of their competitors’ profits as on $1 of their own profits. The study discusses the limitations of the available data, and the potential implications of common ownership for competition in Australia.

A Zoom link will be provided once you register for this event.

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