Study on the Impact of Mergers on Innovation in a Market

Study on the Impact of Mergers on Innovation in a Market

The horizontal merger guidelines define increased market power as the ability of one or more firms to profitably increase prices, reduce output, choice or quality of goods and services, diminish innovation. In most instances, the analyses focus on price as the relevant dimension of competition. Increasingly, however, an important parameter is the impact of a particular merger on the innovative activity of the merged entity and of its competitors post-merger.

Identifying the reaction of competitors upon a realized merger is a difficult task. One aspect is the identification of the relevant competitors and another aspect is that concentration is not a singular event. In this respect publicly available data is hardly suitable in order to portray competitors reactions upon mergers and acquisitions. Further empirical analysis should aim at a profound analysis of market definition. Data on legal disputes might be an appropriate starting point.

Project members

Georg Licht

Georg Licht

Coordinator
Leitung

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Patrick Beschorner

Patrick Beschorner

Senior Researcher

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Christoph Grimpe

Christoph Grimpe

Research Associate

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Bettina Peters

Bettina Peters

Stellvertretende Leitung

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Cooperation partner
Technopolis Consulting Group, Brüssel, BE // Katholieke Universiteit Leuven, Leuven, BE // Prof. Norbert Schulz, Ph.D, Universität Würzburg, Würzburg, DE

Contact

Head, Dr. Georg Licht
Telefon +49 (0)621 1235-177