Innovation and the Merger Paradox
Miyagiwa, Kaz: Yunyun (Jiangyun) Wan
『Economics Letters』 Volume 147 October 2016 pp. 5-7 (2016/10/01)
The merger paradox in Cournot oligopoly is revisited in the presence of R&D investment. Two cases are presented in which firms merge profitably without satisfying the 80-percent threshold requirement of Salant et al. (1983).