Discover and read the best of Twitter Threads about #commonownership
Most recents (3)
So I was waiting for @nberpubs to tweet this out last week (which happened Friday pm). Anyway, here is my paper with @msinkinson and Matt Backus. This is the #commonwnership thread for RTE Cereal. 1/11
chrisconlon.github.io/site/bcs_cerea…
chrisconlon.github.io/site/bcs_cerea…
The reason we chose cereal (besides the obvious: that's what IO economists do) is that there is a lot of variation in the degree of common ownership across firms and over time. 2/11 
For example Kellogg's is 20% owned by a family foundation and is basically indifferent to competitor's profits (weight < 0.2), and should be a strong competitor (turns out it is a high price, high margin firm). Common ownership can be highly asymmetric. (GIS weights KEL ~0.5) 3/
Backus, @conlon_chris & @MSinkinson have a fabulous new paper on #CommonOwnership.
Following a rich intellectual history from Bresnahan (1982) to @steventberry-@PhilHaile (2014) it proposes a new test to discriminate between models of firm conduct.
drive.google.com/file/d/14gqPUu…
Following a rich intellectual history from Bresnahan (1982) to @steventberry-@PhilHaile (2014) it proposes a new test to discriminate between models of firm conduct.
drive.google.com/file/d/14gqPUu…
You may recall that the same set of authors also recently published an excellent paper in AEJ: Micro which documents the stunning increase in common ownership profit weights in the S&P 500 over the last few decades.
chrisconlon.github.io/site/common_ow…
chrisconlon.github.io/site/common_ow…
I'll let others speak to the importance of the methodological contribution. The empirical results from breakfast cereals are interesting in their own right.
They add to recent structural work on markups by Seo & Park (2019) and entry by Ruiz-Perez (2019) in US airlines.
They add to recent structural work on markups by Seo & Park (2019) and entry by Ruiz-Perez (2019) in US airlines.
Fun fact: overriding regulatory data with #alternativedata is also what Dennis, Gerardi & Schenone do to support the EFA-best-paper-award-winning claim that #airlinepaper’s results aren't robust to reasonable alternative empirical choices.
(The difference to Rock & Rubinfeld is that they don’t call it “reformat” when they come up with #alternativedata. They call it “alternative mapping”, among other things.)
Wanna hear more about how they continued furthering a narrative of a false AST paper, even after they realized their EFA-best-paper-winning claims had no basis in fact?
Come join me for a fun ride through the land of #alternativedata!
Come join me for a fun ride through the land of #alternativedata!
