EconPapers    
Economics at your fingertips  
 

Mergers and demand-enhancing innovation

Marc Bourreau, Bruno Jullien () and Yassine Lefouili
Additional contact information
Bruno Jullien: TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CNRS - Centre National de la Recherche Scientifique

Working Papers from HAL

Abstract: We study the impact of horizontal mergers on merging firms' incentives to invest in demand-enhancing innovation. In our baseline model, we identify four effects of a symmetric merger on these incentives: the innovation diversion effect, the margin expansion effect, the demand expansion effect, and the per unit return to innovation effect. We offer succient conditions for a merger to reduce or raise merging firms' incentives to innovate in the absence of spillovers and effciency gains in R&D, and find that a comparison between the innovation diversion and price diversion ratios is informative about the impact of a merger on innovation.

Keywords: Horizontal Mergers; Innovation; Competition (search for similar items in EconPapers)
Date: 2024-04-16
Note: View the original document on HAL open archive server: https://hal.science/hal-04548184v1
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hal.science/hal-04548184v1/document (application/pdf)

Related works:
Working Paper: Mergers and Demand-Enhancing Innovation (2021) Downloads
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:hal:wpaper:hal-04548184

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2025-04-07
Handle: RePEc:hal:wpaper:hal-04548184