Mergers and Innovation Portfolios

Autor: José Luis Moraga‐González, Evgenia Motchenkova, Saish Nevrekar
Přispěvatelé: Economics, Tinbergen Institute
Rok vydání: 2019
Předmět:
Zdroj: Rand Journal of Economics, 53(4), 641-677. Rand Journal of Economics
Moraga-González, J L, Motchenkova, E & Nevrekar, S 2022, ' Mergers and innovation portfolios ', Rand Journal of Economics, vol. 53, no. 4, pp. 641-677 . https://doi.org/10.1111/1756-2171.12426
ISSN: 1556-5068
0741-6261
DOI: 10.2139/ssrn.3500382
Popis: © 2022 The Authors. The RAND Journal of Economics published by Wiley Periodicals LLC on behalf of The RAND Corporation.This article studies mergers in markets where firms invest in a portfolio of research projects of different profitability and social value. The investment of a firm in one project imposes both a negative business-stealing and a positive business-giving externality on the rival firms. We show that when the project that is relatively more profitable for the firms appropriates a larger (smaller) fraction of the social surplus, a merger increases (decreases) consumer welfare by reducing investment in the most profitable project and increasing investment in the alternative project. The innovation portfolio effects of mergers may dominate the usual market power effects.
Databáze: OpenAIRE
Externí odkaz: