@techreport{publications26230,
          volume = {18-949},
           month = {August},
          author = {Bruno Jullien and Yassine Lefouili},
          series = {TSE Working Paper},
       booktitle = {TSE Working Paper},
            type = {Working Paper},
         address = {Toulouse},
           title = {Mergers and investments in new products},
       publisher = {TSE Working Paper},
            year = {2018},
     institution = {Universit{\'e} Toulouse 1 Capitole},
        keywords = {Horizontal Mergers, Product Innovation, R\&D Investments.},
             url = {https://publications.ut-capitole.fr/id/eprint/26230/},
        abstract = {We investigate the impact of a horizontal merger between two competitors on their incentives to invest in R\&D that generates new products. We show that a merger raises the incentives to innovate if and only if the merged entity?s incremental gain from a second innovation is greater than the individual profit of a firm when both firms innovate in the no-merger scenario. Applying this result to the Hotelling model, we find that a merger spurs innovation if the degree of product differentiation is not too high, and show that a merger can be beneficial to consumers.}
}