Cross-border merger and domestic welfare

Arijit Mukherjee

Economics Bulletin, 2006, vol. 6, issue 16, 1-8

Abstract: We consider the welfare effect of cross-border merger in presence of international R&D competition. Cross-border merger increases domestic welfare if the bargaining power of the foreign firm and the slope of the marginal cost of R&D are sufficiently low. Otherwise, domestic welfare is lower under cross-border merger.

JEL-codes: F1 O2 (search for similar items in EconPapers)
Date: 2006-11-14
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Citations: View citations in EconPapers (5)

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