All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

Alexandre Carbonnel
''Can foreclosure benefit consumers? The case of innovation in new markets''
( 2021, Vol. 41 No.3 )
Innovation concerns have been at the core of some recent horizontal and non-horizontal mergers. This has led to a growing literature that has specifically focused on horizontal mergers. In this paper, I show that foreclosure may benefit consumers in non-horizontal mergers when firms compete to innovate in a new market. This is because it may allow consumers to benefit from an innovation to which they would not have access to in the absence of foreclosure. I determine the conditions leading to this conclusion and argue that a cautious approach to foreclosure by competition authorities is warranted when firms compete to innovate in a new market.
Keywords: Mergers, foreclosure, innovation
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
K2 - Regulation and Business Law: General
Manuscript Received : Sep 17 2021 Manuscript Accepted : Sep 17 2021

  This abstract has been downloaded 572 times                The Full PDF of this paper has been downloaded 153794 times