Anticompetitive mergers increase competitors' profits, since they reduce competition. Using a model of endogenous … mergers, we show that such mergers nevertheless may reduce the competitors' share-prices. Thus, event-studies can not detect … anti-competitive mergers. …

-competitive mergers. These results are derived in an endogenous-merger model, predicting the conditions under which mergers occur, the …We explain the empirical puzzle why mergers reduce profits, and raise share prices. If being an 'insider' is better …, since the risk of becoming an outsider is eliminated. We also show that mergers increasing consumers' prices, while …

-level productivity growth, and an inverted-U relationship between competition and firm-level innovation. Notwithstanding the positive …I incorporate an insight of Friedrich Hayek - that competition allows a thousand flowers to bloom, and discovers the … best among them - into a model of Schumpeterian innovation. Firms face uncertainty about the optimal direction of …

an opportunistic takeover designed to take advantage of depressed market prices. This is especially the case in … under-performance. For these HtV firms, the threat of an opportunistic takeover can destroy value by inducing agency con …-creating takeovers and increase innovation and do not induce agency con icts of managerial entrenchment. This implies that for innovative …

(R&D) activity. I exploit a quasi-experiment involving failed mergers to generate exogenous variation in acquisition … diversifying mergers produce both a smaller number of innovations and also less-novel innovations, where innovations are measured … capital market and is largely driven by inventors becoming less productive after the merger rather than inventor exits …

innovation policy in the context of EU economic law (competition policy, intellectual property law, sector regulation). As such … law that moves beyond apparent conflicts and assumes innovation as the starting point. Taking this as the foundation, the … analytical grid to be used to identify ways in which economic law impacts innovation, and second an applied component that …

innovation. We exploit the observed pattern of contributions - the 'revealed preference' of developers - to infer the underlying …

account in merger policy. Although we can show in our study that in one third of all challenged mergers also innovation … mergers. Theoretical background is the still open question how negative effects of mergers on innovation should be taken into …In this empirical study all mergers that have been challenged by the U.S. antitrust agencies FTC and DOJ between 1995 …

firm's incentives for R&D. These changes influence the probability of innovation through two effects: changes in total R … shift from the rival firm to the dominant firm is a good thing as it decreases the likelihood of duplicate innovation (we … rights are strong. That is, firm dominance is good for innovation when (but only when) property rights are strong. We also …