Tools
Tools
Jullien, Bruno
and Lefouili, Yassine
(2018)
Mergers and investments in new products.
TSE Working Paper, n. 18-949, Toulouse
Preview |
Text
Download (203kB) | Preview |
Official URL : http://tse-fr.eu/pub/32923
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.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | August 2018 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | Horizontal Mergers, Product Innovation, R&D Investments. |
| 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: | 01 Jun 2023 07:05 |
| OAI Identifier: | oai:tse-fr.eu:32923 |
| URI: | https://publications.ut-capitole.fr/id/eprint/26230 |
