Imperial College London
Portrait Picture

ProfessorTommasoValletti

Business School

Professor of Economics
 
 
 
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Contact

 

+44 (0)20 7594 9215t.valletti Website CV

 
 
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Location

 

417City and Guilds BuildingSouth Kensington Campus

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Summary

 

Publications

Citation

BibTex format

@article{Federico:2017:10.1016/j.econlet.2017.06.014,
author = {Federico, G and Langus, G and Valletti, T},
doi = {10.1016/j.econlet.2017.06.014},
journal = {Economics Letters},
pages = {136--140},
title = {A simple model of mergers and innovation},
url = {http://dx.doi.org/10.1016/j.econlet.2017.06.014},
volume = {157},
year = {2017}
}
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RIS format (EndNote, RefMan)

TY  - JOUR
AB  - 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 the “inverted-U” relationship between innovation and competition to a merger setting.
AU  - Federico,G
AU  - Langus,G
AU  - Valletti,T
DO  - 10.1016/j.econlet.2017.06.014
EP  - 140
PY  - 2017///
SN  - 1873-7374
SP  - 136
TI  - A simple model of mergers and innovation
T2  - Economics Letters
UR  - http://dx.doi.org/10.1016/j.econlet.2017.06.014
UR  - http://hdl.handle.net/10044/1/49146
VL  - 157
ER  -
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