We study upstream horizontal mergers and their potential efficiency gains. We show that an upstream horizontal merger … can give rise to two efficiency-enhancing effects when firms trade through two-part tariffs. It increases R&D investments … and decreases wholesale prices when downstream competition is not too strong. Examining whether the merger's potential …

A well-known result about market power in emission permit markets is that efficiency can be achieved by full free …

, in line with economic theory, that firms with no market power are able to shift a high share of a tax burden on to …

We analyze the impact of a merger on firms' incentives to innovate. We show that the merging parties always decrease … their innovation efforts post-merger while the outsiders to the merger respond by increasing their effort. A merger tends to … reduce overall innovation. Consumers are always worse off after a merger. Our model calls into question the applicability of …

merger by either reducing or increasing both price and quality. Welfare implications are not clear-cut and mergers might …

We show that the presence of a strategic tax policy increases the incentive for a horizontal merger compared to the … a horizontal merger that has been ignored in the existing literature. In contrast to the usual belief, we also show that … a horizontal merger may benefit the consumers and the society …