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Pro-competitive merger under R&D revisited

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  • Mukherjee, Arijit
  • Ray, Achintya

Abstract

Mergers may increase process innovation and become pro-competitive compared to non-cooperation if firms cannot observe rivals' R&D investments. Hence, the antitrust authorities may not need to be overly concerned about mergers when R&D investments are not readily observable.

Suggested Citation

  • Mukherjee, Arijit & Ray, Achintya, 2024. "Pro-competitive merger under R&D revisited," Economics Letters, Elsevier, vol. 239(C).
    • Handle: RePEc:eee:ecolet:v:239:y:2024:i:c:s0165176524002106
    DOI: 10.1016/j.econlet.2024.111727
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    References listed on IDEAS

    as
    1. Professor Bronwyn Hall, 2013. "The importance (or not) of patents to UK firms," National Institute of Economic and Social Research (NIESR) Discussion Papers 410, National Institute of Economic and Social Research.
    2. Mukherjee, Arijit, 2022. "Merger and process innovation," Economics Letters, Elsevier, vol. 213(C).
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    5. Federico, Giulio & Langus, Gregor & Valletti, Tommaso, 2017. "A simple model of mergers and innovation," Economics Letters, Elsevier, vol. 157(C), pages 136-140.
    6. Bourreau, Marc & Jullien, Bruno, 2018. "Mergers, investments and demand expansion," Economics Letters, Elsevier, vol. 167(C), pages 136-141.
    7. Thibaud Vergé, 2010. "Horizontal Mergers, Structural Remedies, And Consumer Welfare In A Cournot Oligopoly With Assets," Journal of Industrial Economics, Wiley Blackwell, vol. 58(4), pages 723-741, December.
    8. Bronwyn H. Hall & Christian Helmers & Mark Rogers & Vania Sena, 2013. "The importance (or not) of patents to UK firms," Oxford Economic Papers, Oxford University Press, vol. 65(3), pages 603-629, July.
    9. Denicolò, Vincenzo & Polo, Michele, 2021. "Mergers and innovation sharing," Economics Letters, Elsevier, vol. 202(C).
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    11. Cohen, Wesley M. & Goto, Akira & Nagata, Akiya & Nelson, Richard R. & Walsh, John P., 2002. "R&D spillovers, patents and the incentives to innovate in Japan and the United States," Research Policy, Elsevier, vol. 31(8-9), pages 1349-1367, December.
    12. Mukherjee, Arijit, 2023. "Merger and product innovation under cross ownership and cooperative R&D," Economics Letters, Elsevier, vol. 233(C).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Merger; Process innovation; Unobservable r&d;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L00 - Industrial Organization - - General - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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