Abstract
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.
Keywords
Competition; Investments; Innovation; Mergers, Entry;
JEL codes
- D43: Oligopoly and Other Forms of Market Imperfection
- L13: Oligopoly and Other Imperfect Markets
- L40: General
Reference
Yassine Lefouili, and Leonardo Madio, “Mergers and Investments: Where Do We Stand?”, TSE Working Paper, n. 25-1617, February 2025.
See also
Published in
TSE Working Paper, n. 25-1617, February 2025