Hi. Greetings @greenman

The research document for the last week was "Common Ownership and Competition in the Ready-To-Eat Cereal Industry" published by Matthew Backus, Christopher Conlon, and Michael Sinkinson on the year January 11, 2021.

Here is the source link of the document:
https://chrisconlon.github.io/site/bcs_cereal.pdf

This document's google drive folder link:
https://drive.google.com/drive/folders/15BwFoG5-s_3INHQnYdupgHWR7J1pYBKL?usp=sharing

And our google drives all documents folder:
https://drive.google.com/drive/u/0/folders/1sk4kfCca9MsKIx-JYTUHzLVBCwrY__x_

This document is a bit larger than the previous documents and contains higher mathematical calculations and derivatives of the common ownership hypothesis. It also shows the potential magnitude of common ownership whose effects would be large, this test finds that standard own-firm profit maximization is more consistent with the data.

The hypothesis says that firms are increasingly owned by overlapping shareholders, and the best way to maximize the value of shareholders’ entire portfolios might be for firms to unilaterally relax competition in product markets.

The document contains and shows how to evaluate the common ownership hypothesis in a conduct testing approach, but our framework is quite general and it can be used to test other models or hypotheses that predict equilibrium markups.