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R&D and Merger Profitability
DC Field | Value | Language |
---|---|---|
dc.contributor.author | Atallah, Gamal | - |
dc.date.accessioned | 2009-01-29T07:58:13Z | - |
dc.date.available | 2009-01-29T07:58:13Z | - |
dc.date.issued | 2005-10 | - |
dc.identifier.citation | Seoul Journal of Economics, Vol.18 No.4, pp. 325-354 | - |
dc.identifier.issn | 1225-0279 | - |
dc.identifier.uri | https://hdl.handle.net/10371/1343 | - |
dc.description.abstract | This paper analyzes the interaction between R&D and merger profitability. The industry is composed of symmetric firms who undertake cost-reducing R&D and compete in output. A subgroup of firms merge, and all firms adjust their R&D investments to the new market structure. It is found that in most cases R&D has a negligible impact on merger profitability, and does not change the critical number of firms required to make a merger profitable. However, when firms are indifferent toward a merger in the absence of R&D, R&D has an effect on merger profitability. Noncooperative R&D makes such mergers profitable for low and high levels of spillovers, and unprofitable for intermediate levels of spillovers; moreover, the range of spillovers such that a merger is unprofitable due to R&D increases with concentration. Cooperative R&D without information sharing makes such mergers profitable for low spillovers, but unprofitable for high spillovers. Cooperative R&D with information sharing makes such mergers unprofitable. | - |
dc.language.iso | en | - |
dc.publisher | Institute of Economic Research, Seoul National University | - |
dc.subject | Mergers | - |
dc.subject | Merger paradox | - |
dc.subject | R&D Cooperation | - |
dc.subject | R&D Spillovers | - |
dc.title | R&D and Merger Profitability | - |
dc.type | SNU Journal | - |
dc.citation.journaltitle | Seoul Journal of Economics | - |
dc.citation.endpage | 354 | - |
dc.citation.number | 4 | - |
dc.citation.pages | 325-354 | - |
dc.citation.startpage | 325 | - |
dc.citation.volume | 18 | - |
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