&D and consumer welfare in the long run, which is in contrast to arguments provided by antitrust agencies in recent merger … cases. We provide conditions for when a merger increases industry innovation and when evaluating mergers based on static … price effects is aligned with a fully dynamic merger evaluation. These conditions are based on properties of the product …

&D and consumer welfare in the long run, contradicting arguments provided by antitrust agencies in recent merger cases. We …

We analyze the impact of a merger on firms' incentives to innovate. We show that the merging parties always decrease … their innovation efforts post-merger while the outsiders to the merger respond by increasing their effort. A merger tends to … reduce overall innovation. Consumers are always worse off after a merger. Our model calls into question the applicability of …

We analyze the impact of a merger on firms' incentives to innovate. We show that the merging parties always decrease … their innovation efforts post-merger while the outsiders to the merger respond by increasing their effort. A merger tends to … reduce overall innovation. Consumers are always worse off after a merger. Our model calls into question the applicability of …

Recent merger decisions by competition authorities have revived the debate on the relationship between competition and … competition assessment of the impact of a merger on dynamic competition, including its effects on innovation …

We set up a stylized oligopoly model of uncertain product innovation to analyze the effects of a merger on innovation … incentives and on consumer surplus. The model incorporates two competitive channels for merger effects: the "price coordination … externality depresses it. The latter effect is stronger in our simulations and, as a result, the merger leads to lower innovation …