Do Mutual Funds Dampen Competition?

business_ethics_highlights_2This piece presents an interesting hypothesis. Mutual funds and other institutional investors often own shares in more than one company within the same industry. They therefore profit from dampening competitive zeal. That’s good for investors, but bad for customers. >>>

Mutual Funds’ Dark Side: Why airlines and other industries keep prices too high

…But we suspect that nothing so obvious is going on. When all the people with the power over pricing share a common interest in raising prices, they don’t need to enter conspiracies or even talk to one another…..


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