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The relationship between competition and innovation is difficult to disentangle, as exogenous variation in market structure is rare. The 1952 breakup of Germany's leading chemical company, IG Farben, represents such a disruption. After the Second World War, the Allies occupying Germany imposed...
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. Even if market concentration and technological disadvantages lead to a significant welfare reduction after merger, from …
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's decision process. We find that the probability of a phase 2 investigation and of a prohibition of the merger increases with the … parties' market shares. The probability increases also when the Commission finds high entry barriers or that post-merger …
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