Spoiling synergy

Roland Bel, Vladimir Smirnov and Andrew Wait ()

Economics Letters, 2016, vol. 143, issue C, 80-83

Abstract: Assets may be complementary–producing more return together–but substitute at the margin–generating lower marginal return when assets are together, leading agents to underinvest. When the effort effect dominates the synergy effect, merging complementary assets may not be efficient.

Keywords: Complementarity; Synergy; Mergers (search for similar items in EconPapers)
JEL-codes: D21 L23 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:143:y:2016:i:c:p:80-83

DOI: 10.1016/j.econlet.2016.04.002

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