Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/273473 
Year of Publication: 
2023
Series/Report no.: 
DICE Discussion Paper No. 402
Publisher: 
Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE), Düsseldorf
Abstract: 
In this paper, we summarize the economic literature on non-price effects of mergers and acquisitions (M&As). Specifically, we discuss the effects of M&As on innovation, product variety, and sustainability. Although the relationship is theoretically ambiguous, the vast majority of ex-post evaluations of horizontal M&As finds large negative effects on innovation inputs and outputs. Results are mixed for outcomes related to variety and product quality. Literature on merger effects on sustainability is still scarce and not conclusive so far. Overall, the existing literature indicates that non-price effects of horizontal mergers seem to amplify negative consequences for consumers from price increases through reduced competition. We derive a number of ideas and options for merger policy.
Subjects: 
Merger
Competition Policy
Innovation
R&D
Product Variety
Sustainability
JEL: 
L10
L11
L13
L19
ISBN: 
978-3-86304-401-5
Document Type: 
Working Paper

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