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.

Sprache
Englisch

Erschienen in
Series: W.E.P. - Würzburg Economic Papers ; No. 73

Klassifikation
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
Thema
Horizontal mergers
innovation
research joint venture
market structure

Ereignis
Geistige Schöpfung
(wer)
Kleer, Robin
Ereignis
Veröffentlichung
(wer)
University of Würzburg, Department of Economics
(wo)
Würzburg
(wann)
2006

Handle
Letzte Aktualisierung
10.03.2025, 11:46 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Kleer, Robin
  • University of Würzburg, Department of Economics

Entstanden

  • 2006

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