Recent merger decisions by competition authorities have revived the debate on the relationship between competition and … competition assessment of the impact of a merger on dynamic competition, including its effects on innovation …

competition and increasing prices. Despite this, under standard industry settings it is possible to show that the prospect of a … merger partner. The result is significantly higher rate of innovation with mergers than without and significantly higher long …

innovation effects should be handled by competition authorities in merger control and highlight the differences with the analysis … that the overall impact of a merger on innovation may be either positive or negative and sheds light on the circumstances …

We set up a stylized oligopoly model of uncertain product innovation to analyze the effects of a merger on innovation … incentives and on consumer surplus. The model incorporates two competitive channels for merger effects: the "price coordination … externality depresses it. The latter effect is stronger in our simulations and, as a result, the merger leads to lower innovation …