Horizontal mergers, firm heterogeneity, and R&D investments

Noriaki Matsushima, Yasuhiro Sato and Kazuhiro Yamamoto

ISER Discussion Paper from Institute of Social and Economic Research, Osaka University

Abstract: We investigate the incentive and the welfare implications of a merger when heterogeneous oligopolists compete both in process R&D and on the product market. We examine how a merger affects the output, investment, and profits of firms, whether firms have merger incentives, and, if so, whether such mergers are desirable from the viewpoint of social welfare. We also derive equilibrium configurations and explore their welfare properties.

New Economics Papers: this item is included in nep-com, nep-ind, nep-ino, nep-pke and nep-tid
Date: 2009-09
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Persistent link: http://EconPapers.repec.org/RePEc:dpr:wpaper:0754

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