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Bourreau, Marc
, Jullien, Bruno
ORCID: https://orcid.org/0000-0002-5919-7835 and Lefouili, YassineORCID: https://orcid.org/0000-0003-4966-7212
(2026)
"Horizontal Mergers and Incremental Innovation".
Rand journal of economics.
(In Press)
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Abstract
We study the impact of horizontal mergers on the incentives of merging firms to invest in incremental innovation. We provide a decomposition of this impact that clarifies the various forces at work and the differences between demand-enhancing and cost-reducing innovation. Moreover, we derive sufficient conditions for a merger to either reduce or raise the merging firms’ incentives to innovate, and show that the comparison of the price diversion ratio and the innovation diversion ratio can help screen mergers. We also uncover a useful connection between the level of production synergies induced by a merger and its impact on innovation.
| Item Type: | Article |
|---|---|
| Language: | English |
| Date: | 2026 |
| Refereed: | Yes |
| Place of Publication: | Mount Morris |
| Uncontrolled Keywords: | Horizontal Mergers, Innovation, Competition |
| JEL Classification: | D43 - Oligopoly and Other Forms of Market Imperfection L13 - Oligopoly and Other Imperfect Markets L40 - General |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Site: | UT1 |
| Date Deposited: | 30 Jan 2026 10:18 |
| Last Modified: | 30 Jan 2026 10:19 |
| OAI Identifier: | oai:tse-fr.eu:129833 |
| URI: | https://publications.ut-capitole.fr/id/eprint/49772 |
