Abstract
In this paper, we review recent studies on the impact of mergers on investments. We begin by examining how mergers among competing incumbents inf luence firms’ incentives to develop new products and undertake cost-reducing or quality-enhancing investment. We then analyze how an incumbent’s acquisition of an innovative entrant affects the investment incentives of both parties. Next, we discuss the effects of vertical mergers on the investment decisions of both upstream and downstream firms. Finally, we highlight several policy-relevant insights from the literature and suggest directions for future research.
Keywords
Competition; Investment; Innovation; Mergers; Entry;
JEL codes
- D43: Oligopoly and Other Forms of Market Imperfection
- L13: Oligopoly and Other Imperfect Markets
- L40: General
Reference
Yassine Lefouili, and Leonardo Madio, “Mergers and Investments: Where Do We Stand?”, International Journal of Industrial Organization, vol. 105, n. 103269, April 2026.
See also
Published in
International Journal of Industrial Organization, vol. 105, n. 103269, April 2026