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Mergers in Multidimensional Competition

Datos Bibliográficos

ID9727745
AutoresCarl Davidson (University of Nottingham), BEN FERRETT (0000-0002-6356-0481, University of Nottingham)
Año2007
Volumen74
Número296
Páginas695-712
Fecha de publicación2007-11-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaEconomica (JOURNAL)
Identificadores de la revistaISSN: 0013-0427 • E-ISSN: 1468-0335
EditorialWiley (PUBLISHER • GB)
DOI10.1111/j.1468-0335.2007.00595.x
OpenAlexW3121202157
IdiomaEN
Referencias citadas14

Horizontal mergers are often driven by the desire to exploit R&D complementarities. We investigate the positive features of such a merger when oligopolists compete both in process R&D and on the product market. For a non‐trivial degree of R&D complementarity, we show that the merger has the following intuitively appealing features independently of the strategic variable in market competition: insiders benefit; outsiders are harmed; and insiders end up larger than outsiders. These results contrast with those of traditional models of merger to achieve market power alone, which are known to be counterintuitive and sensitive to the mode of product market competition

Business · Competition (biology) · Complementarity (molecular biology) · Counterintuitive · Economics · Exploit · Industrial organization · Market power · Market share · Microeconomics · Product market · Computer Science · Corporate Finance and Governance · Digital Platforms and Economics · Finance · Merger and Competition Analysis

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    Open Access•Bengt Holmström, John Roberts•The Journal of Economic…•1998

  • New Evidence and Perspectives on Mergers

    Open Access•Gregor Andrade, Mark Mitchell et al.•The Journal of Economic…•2001

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