Merger Policy and Innovation: Must Enforcement Change to Account for Technological Change?
74 Pages Posted: 14 Sep 2004 Last revised: 8 Oct 2022
Date Written: August 2004
Abstract
Merger policy is the most active area of U.S. antitrust policy. It is now widely believed that merger policy must move beyond its traditional focus on static efficiency to account for innovation and address dynamic efficiency. Innovation can fundamentally affect merger analysis in two ways. First, innovation can dramatically affect the relationship between the pre-merger marketplace and what is likely to happen if a proposed merger is consummated. Thus, innovation can fundamentally influence the appropriate analysis for addressing traditional, static efficiency concerns. Second, innovation can itself be an important dimension of market performance that is potentially affected by a merger. We explore how merger policy is meeting the challenges posed by innovation.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
When Does Start-Up Innovation Spur the Gale of Creative Destruction?
By Joshua S. Gans, David H. Hsu, ...
-
Incumbency and R&D Incentives: Licensing the Gale of Creative Destruction
By Joshua S. Gans and Scott Stern
-
By Joshua S. Gans and Scott Stern
-
Some Economic Aspects of Antitrust Analysis in Dynamically Competitive Industries
-
Rewarding Sequential Innovators: Prizes, Patents and Buyouts
By Gerard Llobet, Hugo A. Hopenhayn, ...
-
Markets for Technology and Their Implications for Corporate Strategy
By Ashish Arora, Andrea Fosfuri, ...
-
When Does Funding Research by Smaller Firms Bear Fruit?: Evidence from the Sbir Program
By Joshua S. Gans and Scott Stern
-
Markets for Technology (Why Do We See Them, Why Don't We See More of Them, and Why Should We Care)
By Andrea Fosfuri, Ashish Arora, ...