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Empirical Analysis of the Assessment of Innovation Effects in U.S. Merger Cases

Author

Listed:
  • Wolfgang Kerber

    (University of Marburg)

  • Benjamin Kern

    (University of Marburg)

  • Ralf Dewenter

    (HSU Hamburg)

Abstract

In this empirical study all mergers that have been challenged by the U.S. antitrust agencies FTC and DOJ between 1995 and 2008 were analyzed in regard to the question to what extent and how the agencies assessed the innovation effects of mergers. Theoretical background is the still open question how negative effects of mergers on innovation should be taken into account in merger policy. Although we can show in our study that in one third of all challenged mergers also innovation concerns were raised, the results also point to a still existing large degree of uneasiness and inconsistencies of the agencies in regard to the assessment of innovation effects. A particularly interesting result is that - despite the wide-spread rejection of the "innovation market approach" in the antitrust debate - the agencies used more an innovationspecific assessment approach that includes also innovation in the market definition than the pure traditional product market concept. Additionally, we also found significant differences between the assessment approaches of the FTC and the DOJ.

Suggested Citation

  • Wolfgang Kerber & Benjamin Kern & Ralf Dewenter, 2014. "Empirical Analysis of the Assessment of Innovation Effects in U.S. Merger Cases," MAGKS Papers on Economics 201450, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  • Handle: RePEc:mar:magkse:201450
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    References listed on IDEAS

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    Cited by:

    1. Wolfgang Kerber, 2017. "Rights on Data: Competition, Innovation, and Competition Law: Dissecting the Interplay," MAGKS Papers on Economics 201742, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

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    More about this item

    Keywords

    innovation; merger policy; US antitrust; innovation market;
    All these keywords.

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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