Common Ownership Among Investors Could Make Economy Less Competitive

Economists Jose Azar (University of Navarra IESE Business School) and Martin Schmalz (University of Michigan’s Ross Business School) have studied the idea that common ownership is “making companies and the economy less competitive.” This according to a recent article in Bloomberg. The article highlights the fact that, in recent decades, U.S. industries have become more concentrated, an evolution that leads to a more monopolistic environment which in turn results in “higher prices and lower productivity, and it also probably contributes to income inequality.” This, along with the hypothesis posed by Azar and Schmalz, could result in an economy that is […]