-competitive mergers. These results are derived in an endogenous-merger model, predicting the conditions under which mergers occur, the …We explain the empirical puzzle why mergers reduce profits, and raise share prices. If being an 'insider' is better …, since the risk of becoming an outsider is eliminated. We also show that mergers increasing consumers' prices, while …

firm's incentives for R&D. These changes influence the probability of innovation through two effects: changes in total R … shift from the rival firm to the dominant firm is a good thing as it decreases the likelihood of duplicate innovation (we … rights are strong. That is, firm dominance is good for innovation when (but only when) property rights are strong. We also …

innovation. We exploit the observed pattern of contributions - the 'revealed preference' of developers - to infer the underlying …

innovation policy in the context of EU economic law (competition policy, intellectual property law, sector regulation). As such … law that moves beyond apparent conflicts and assumes innovation as the starting point. Taking this as the foundation, the … analytical grid to be used to identify ways in which economic law impacts innovation, and second an applied component that …

profitable merger does not occur, because it is even more profitable for each firm to unilaterally stand as an outsider (Stigler … endogenous rather than exogenous merger theory. More surprisingly, our data suggests that fairness (or relative performance …) considerations also make profitable mergers difficult. Mergers that should occur in equilibrium do not, since they require an unequal …

We show that when the researcher’s (observable but not contractible) contribution to innovation is crucial, a covenant …

necessarily restrict innovation incentives. We also show that network effects promote acquisitions over entry and that the … option of selling to an incumbent increases innovation incentives for entrepreneurs when network effects are strong and … entrepreneur has strong incentives to invest in the initial user base of the innovation. …

that it is beneficial to be a non-merging rival firm to a large horizontal merger. Using a sample of mergers with expert …It is commonly perceived that firms do not want to be outsiders to a merger between competitor firms. We instead argue … merger announcement date. Further, we find that the stock reaction of rivals to merger events is not sensitive to merger …

predicts the frequency of mergers and acquisitions to be negatively correlated with employment protection. These predictions …

Empirical studies have found that takeover activity is positively related to the absolute size of industry-level shocks …. In this paper we develop a dynamic framework to analyze the timing of takeover which explains this pattern. Takeover may … by shocks to an industry variable. With competing acquirers of different types, takeover occurs only when shocks are …