Vertical Forward Cross-Ownership and Social Efficiency of Free Entry

Vertical Forward Cross-Ownership and Social Efficiency of Free Entry | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Vertical Forward Cross-Ownership and Social Efficiency of Free Entry Jen-Yao Lee, Leonard F. S. Wang, Chien-Shu Tsai This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-7067862/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This paper investigates the welfare effect of vertical forward cross-ownership with free entry of self-owned firms. We find that firstly, a higher degree of vertical forward cross-ownership will decrease the free entry number of downstream firms; secondly, at free entry equilibrium, a higher degree of vertical forward cross ownership will lead to a higher social welfare with product differentiation; lastly, entering of self-owned firms at free entry equilibrium can be socially insufficient or socially excessive depending on the market size and the degree of cross ownership. JEL Classification : D43; L13; L41 Product Differentiation Cross Ownership Social Welfare Free Entry Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-7067862","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":481939585,"identity":"95e7d17f-f46a-4d67-aff4-cba81e5b20e1","order_by":0,"name":"Jen-Yao Lee","email":"","orcid":"","institution":"National Kaohsiung University of Science and Technology","correspondingAuthor":false,"prefix":"","firstName":"Jen-Yao","middleName":"","lastName":"Lee","suffix":""},{"id":481939586,"identity":"c32ff84c-0114-40d9-9950-29361356e7f3","order_by":1,"name":"Leonard F. S. 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