Since the financial crisis in 2008, the prevences of investors radically changed. Lots of investors moved from riskier actively managed funds (aimed at outperforming the market) to passively managed funds (which follow the market).
This financial change has expanded the assets under management of already big institutional assets managers, turning them into giants!
Recent studies have shown that these managers are the largest shareholders of 88% of the S&P500 firms. The three biggest investment funds, BlackRock, Vanguard and State Street, have assests under management similar to the GDP of the entire United States!

These institutional managers, the evidence shows us, would benefit from overall industry wide success and not individual firm success.

Therefore, the question is raised: are passive investors exerting influence on firms they own to compete less?
If this is true, what will be the responses of the government? How would breaking up the big three be?
And what is the impact of these enormous influencial firms on consumer welfare? Has financial theory forgotten about consumers?

José Azar received his Ph.D. and master's degree in Economics from Princeton University, and now is Assistant Professor of economics at the IESE Business School.

Anna holds a Ph.D. from the University College London (UCL) Faculty of Laws, and now is a Senior Lecturer at Lund University Faculty of Law, publishing about Antitrust/Competition Law and Corporate Governance.

Interviewer: Reinier de Bruin
Music: Ruse by www.musicscreen.org