Arbeitspapier
The Effect of Mergers on the Incentive to Invest in Cost Reducing Innovations
Both mergers and innovation are central elements of a firm's competitive strategy. However, model-theoretical analyses of the merger-innovation link is sparse. The aim of this paper is to analyze the impact of mergers on innovative activities and product market competition in the context of incremental process innovations. Inefficiencies due to organizational problems of mergers are accounted for. We show that optimal investment strategies depend on the resulting market structure and differ significantly from insider to outsider. In our linear model mergers turn out to increase social surplus.
- Language
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Englisch
- Bibliographic citation
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Series: W.E.P. - Würzburg Economic Papers ; No. 73
- Classification
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Wirtschaft
Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
Innovation and Invention: Processes and Incentives
Firm Organization and Market Structure
Oligopoly and Other Imperfect Markets
- Subject
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Horizontal mergers
innovation
research joint venture
market structure
- Event
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Geistige Schöpfung
- (who)
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Kleer, Robin
- Event
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Veröffentlichung
- (who)
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University of Würzburg, Department of Economics
- (where)
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Würzburg
- (when)
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2006
- Handle
- Last update
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10.03.2025, 11:46 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Kleer, Robin
- University of Würzburg, Department of Economics
Time of origin
- 2006