This paper provides a theory of strategic innovation project choice by incumbents and start-ups. We apply this theory … to identify the effects of prohibiting start-up acquisitions. We differentiate between killer acquisitions (when the … incumbent does not commercialize the acquired start-up's technology) and acquisitions with commercialization. A restrictive …

parameters, such a strategic distortion may result in an alignment or a misalignment of the direction in which innovation goes … relative to what is socially optimal. Moreover, prohibiting acquisitions may increase or decrease consumer surplus. The more …, the more likely is that consumers benefit (suffer) following an acquisition. These results are robust to acquisitions …

, prohibiting acquisitions has a weakly negative overall innovation effect. We provide conditions determining the size of the effect …, including merger remedies and the tax treatment of acquisitions and initial public offerings. Such interventions tend to prevent …This paper provides a theory of strategic innovation project choice by incumbents and start-ups which serves as a …

foundation for the analysis of acquisition policy. We show that prohibiting acquisitions has a weakly negative innovation effect … analyze the effects of less restrictive policies, including merger remedies and the tax treatment of acquisitions and initial …This paper provides a theory of strategic innovation project choice by incumbents and start-ups which serves as a …

prohibiting killer acquisitions strictly reduces the variety of innovation projects. By contrast, we find that prohibiting other … acquisitions only has a weakly negative innovation effect, and we provide conditions under which the effect is zero. Furthermore …, for both killer and other acquisitions, we identify market conditions under which the innovation effect is small, so that …

foundation for the analysis of acquisition policy. We show that prohibiting acquisitions has a weakly negative innovation effect … further analyze the effects of less restrictive policies, including merger remedies and the tax treatment of acquisitions and …This paper provides a theory of strategic innovation project choice by incumbents and start-ups which serves as a …

prohibiting killer acquisitions strictly reduces the variety of innovation projects. By contrast, we find that prohibiting other … acquisitions only has a weakly negative innovation effect, and we provide conditions under which the effect is zero. Furthermore …, for both killer and other acquisitions, we identify market conditions under which the innovation effect is small, so that …

This paper provides a theory of strategic innovation project choice by incumbents and start-ups. We apply this theory … to identify the effects of prohibiting start-up acquisitions. We differentiate between killer acquisitions (when the … incumbent does not commercialize the acquired start-up's technology) and acquisitions with commercialization. A restrictive …

This paper provides a theory of strategic innovation project choice by incumbents and start-ups. We apply this theory … to identify the effects of prohibiting start-up acquisitions. We differentiate between killer acquisitions (when the … incumbent does not commercialize the acquired start-up's technology) and acquisitions with commercialization. A restrictive …

This paper studies mergers in markets where firms invest in a portfolio of research projects of different profitability … firms because it lowers the probability they win the innovation contest for that project; however, the investment of a firm … appropriable, then a merger increases consumer welfare by reducing investment in the most profitable project and increasing …