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D’Annunzio, Anna
, Jullien, Bruno
ORCID: https://orcid.org/0000-0002-5919-7835, Lefouili, Yassine and Madio, Leonardo
(2025)
Mergers and investments in new products.
TSE Working Paper, n. 18-949, Toulouse
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Abstract
This paper examines how horizontal mergers affect firms’ incentives to invest in R&D leading to the development of new products. We characterize the impact of a merger to monopoly and a 3-to-2 merger on equilibrium innovation efforts and consumer surplus, absent efficiency gains and spillovers. We show that a 3-to-2 merger directly alters the outsider’s innovation incentives by shifting its best-response function upward, and we analyze how this mechanism affects merger outcomes for innovation and consumer surplus. Finally, we examine how efficiency gains and remedies modify post-merger innovation efforts.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | December 2025 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | Horizontal Mergers, R&D Investments, Product Innovation |
| JEL Classification: | K21 - Antitrust Law L13 - Oligopoly and Other Imperfect Markets L40 - General |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse 1 Capitole |
| Site: | UT1 |
| Date Deposited: | 07 Sep 2018 09:13 |
| Last Modified: | 29 Jan 2026 07:50 |
| OAI Identifier: | oai:tse-fr.eu:32923 |
| URI: | https://publications.ut-capitole.fr/id/eprint/26230 |
