%0 Journal Article
%@ 0025-1909
%A Cornière, Alexandre de
%A Taylor, Greg
%C Hanover
%D 2024
%F publications:49718
%I nstitute for Operations Research and the Management Sciences
%J Management Science
%N n° 9
%R 10.1287/mnsc.2023.04104
%T Data-Driven Mergers
%U https://publications.ut-capitole.fr/id/eprint/49718/
%V vol. 70
%X We study mergers between firms operating in data-connected markets: the data  generated as a byproduct of the activity on market A can be used by firms operating  on market B. The effects of such a merger depend on whether data trade among  independent firms is possible, and on whether data use benefits consumers or leads  to more surplus extraction. When data increases product B’s quality, the merger  benefits consumers on both markets if data cannot be traded absent the merger, and  harms them otherwise. When data is used to extract consumer surplus on market B  the merger increases consumer surplus on market A and reduces it on market B.