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Horizontal Mergers and Innovation

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  • Jullien, Bruno
  • Lefouili, Yassine

Abstract

This paper discusses the effects of horizontal mergers on innovation. We rely on the existing academic literature and our own research work to present the various positive and negative effects of mergers on innovation. Our analysis shows that the overall impact of a merger on innovation may be either positive or negative and sheds light on the circumstances under which each of these scenarios is likely to arise. We derive a number of policy implications regarding the way innovation effects should be handled by competition authorities in merger control and highlight the differences with the analysis of price effects.

Suggested Citation

  • Jullien, Bruno & Lefouili, Yassine, 2018. "Horizontal Mergers and Innovation," CEPR Discussion Papers 12773, Centre for Economic Policy Research.
    • Handle: RePEc:cpr:ceprdp:12773
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    References listed on IDEAS

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    1. López, Ángel L. & Vives, Xavier, 2016. "Cross-ownership, R&D Spillovers, and Antitrust Policy," IESE Research Papers D/1140, IESE Business School.
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    Keywords

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    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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