Horizontal mergers, firm heterogeneity, and R&D investments

We investigate the incentive and the welfare implications of a merger when heterogeneous oligopolists compete both in process R&D and on the product market. We examine how a merger affects the output, investment, and profits of firms, whether firms have merger incentives, and, if so, whether such mergers are desirable from the viewpoint of social welfare. We also derive equilibrium configurations and explore their welfare properties.

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Year of publication:	2009
Authors:	Matsushima, Noriaki ; Sato, Yasuhiro ; Yamamoto, Kazuhiro
Publisher:	Osaka : Osaka University, Institute of Social and Economic Research (ISER)
Subject:	mergers \| oligopoly \| R&D \| heterogeneity

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Series:	ISER Discussion Paper ; 754
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	616981813 [GVK] hdl:10419/92686 [Handle]
Classification:	L41 - Monopolization; Horizontal Anticompetitive Practices ; L13 - Oligopoly and Other Imperfect Markets ; O32 - Management of Technological Innovation and R&D
Source:	EconStor

Persistent link: https://www.econbiz.de/10010332309