Document de travail

Mergers and Investments: Where Do We Stand?

Yassine Lefouili et Leonardo Madio

Résumé

In this paper, we review recent studies on the impact of mergers on investments. First, we examine how mergers among competing incumbents influence firms' incentives to develop new products and undertake cost-reducing or quality-enhancing investments. Second, we analyze how an incumbent's acquisition of an innovative entrant affects the investment incentives of both parties. Third, we discuss the effects of vertical mergers on the investment decisions of both upstream and downstream firms. Finally, we outline a few directions for future research.

Mots-clés

Competition; Investments; Innovation; Mergers, Entry;

Codes JEL

  • D43: Oligopoly and Other Forms of Market Imperfection
  • L13: Oligopoly and Other Imperfect Markets
  • L40: General

Référence

Yassine Lefouili et Leonardo Madio, « Mergers and Investments: Where Do We Stand? », TSE Working Paper, n° 25-1617, février 2025.

Voir aussi

Publié dans

TSE Working Paper, n° 25-1617, février 2025