Data-Driven Mergers

Alexandre de Cornière () and Greg Taylor ()
Additional contact information
Alexandre de Cornière: Toulouse School of Economics, University of Toulouse Capitole, 31000 Toulouse, France
Greg Taylor: Oxford Internet Institute, University of Oxford, Oxford OX1 3JS, United Kingdom

Management Science, 2024, vol. 70, issue 9, 6473-6482

Abstract: We study mergers between firms operating in data-connected markets: the data generated as a byproduct of the activity in market A can be used by firms operating in market B . The effects of such a merger depend on whether data trade among independent firms is possible and whether data use benefits consumers or leads to more surplus extraction. When data increases product B ’s quality, the merger benefits consumers in both markets if data cannot be traded absent the merger and harms them otherwise. When data are used to extract consumer surplus in market B , the merger increases consumer surplus in market A and reduces it in market B .

Keywords: economics: game theory and bargaining theory; economics: microeconomic behavior; industrial organization: market structure; firm strategy; and market performance (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.2023.04104 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:70:y:2024:i:9:p:6473-6482

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().