Publication: R&D investments fostering horizontal mergers
dc.affiliation.dpto | UC3M. Departamento de Economía | es |
dc.contributor.author | Cabolis, C. | |
dc.contributor.author | Manasakis, C. | |
dc.contributor.author | Moreno, Diego | |
dc.contributor.author | Petrakis, Emmanuel | |
dc.contributor.editor | Universidad Carlos III de Madrid. Departamento de Economía | es |
dc.date.accessioned | 2016-07-04T12:52:19Z | |
dc.date.available | 2016-07-04T12:52:19Z | |
dc.date.issued | 2016-06-01 | |
dc.description.abstract | We study a homogenous good triopoly in which firms first choose their cost-reducing R&D investments and consider alternative merger proposals, and then compete à la Cournot in the ensuing industry. We identify conditions under which both horizontal mergers and non integration are sustained by Coalition-Proof Nash equilibria (CPNE). These conditions involve the effectiveness of the R&D technology, as well as the distribution of the bargaining power between the acquirer and the acquiree, which determine the allocation of the incremental profits generated by the merger. We show that whether firms follow duplicative or complementary research paths, sustaining a merger generally requires a sufficiently effective R&D technology that creates endogenous cost asymmetries and renders the merger profitable, and a moderate distribution of bargaining power that allows to spread the benefits of the merger. We examine the welfare effects of mergers and obtain clear policy guidelines. | es |
dc.description.sponsorship | We would like to thank Lindsay McTeague for editorial assistance, and John Geanakoplos, Patrick Rey and participants of research seminars at Düsseldorf Institute for Competition Economics, the Higher School of Economics (Moscow), and the University of Cyprus for helpful comments and suggestions. Part of this work was supported by COST Action IS1104 “The EU in the new economic complex geography: models, tools and policy evaluation”. Moreno acknowledges financial support from the Ministerio Economía y Competitividad (Spain), grants ECO2014-55953-P and MDM2014-0431, and from the Comunidad de Madrid, grant S2015/HUM-3444. | en |
dc.format.mimetype | application/pdf | |
dc.identifier.issn | 2340-5031 | es |
dc.identifier.uri | https://hdl.handle.net/10016/23280 | |
dc.identifier.uxxi | DT/0000001467 | es |
dc.language.iso | eng | es |
dc.relation.ispartofseries | UC3M working papers. Economics | es |
dc.relation.ispartofseries | 16-09 | es |
dc.relation.projectID | Gobierno de España. ECO2014-55953-P | |
dc.relation.projectID | Gobierno de España. MDM2014-0431 | |
dc.relation.projectID | Comunidad de Madrid. S2015/HUM-3444/MADECO-CM | |
dc.rights | Atribución-NoComercial-SinDerivadas 3.0 España | * |
dc.rights.accessRights | open access | |
dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/3.0/es/ | * |
dc.subject.other | Horizontal Mergers | en |
dc.subject.other | Cost-Reducing Innovation | en |
dc.subject.other | Endogenous Efficiency Gains | en |
dc.subject.other | Antitrust | en |
dc.subject.other | Coalition-Proof Nash Equilibrium | en |
dc.title | R&D investments fostering horizontal mergers | en |
dc.type | working paper | * |
dc.type.hasVersion | AO | * |
dspace.entity.type | Publication |
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