It Takes Two to Tango: Interlockings and Partial Equity Ownership
Bibliographic record
Abstract
This paper investigates the role of interlocking directorates as a pre-deal mechanism in minority equity acquisitions between firms competing in the same product market. The potential gain from such transactions depends on the target firm’s private intrinsic value, which the acquiring firm must assess under conditions of adverse selection. As an alternative, the acquirer may propose that one of its executives join the target’s board to facilitate information disclosure. For this arrangement to succeed, however, the target must consent to the proposal. To analyze this mechanism, we develop a novel theoretical framework that identifies the conditions under which interlocking directorates arise and determines the equilibrium terms of the minority equity acquisition. The findings have important antitrust policy implications. An interlocking directorate is not necessarily part of a collusive arrangement, yet it may represent an initial step toward minority equity participation among competing firms in the same market.
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How this classification was reachedexpand
Full frame distilled prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.
Codex and Gemma teacher scores by category
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.000 | 0.000 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.000 | 0.000 |
| Bibliometrics | 0.000 | 0.000 |
| Science and technology studies | 0.000 | 0.000 |
| Scholarly communication | 0.000 | 0.000 |
| Open science | 0.000 | 0.000 |
| Research integrity | 0.000 | 0.000 |
| Insufficient payload (model declined to judge) | 0.000 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from itClassification
machine, unvalidatedMachine predicted; a candidate call from one teacher head, not a consensus.
How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".