Abstract

http://ssrn.com/abstract=2282327
 


 



To Merge or to License: Implications of Information Sharing for Optimal Merger Policy


Shiou Shieh


National Taipei University - Department of Economics

Chi-Fei Huang


National Taipei University

Hsiao-Chi Chen


National Taipei University - Department of Economics

July 2013

The Manchester School, Vol. 81, Issue 4, pp. 599-619, 2013

Abstract:     
We investigate the antitrust authority's optimal merger policy in a duopoly model with cost asymmetry and asymmetric information regarding uncertain demand. Technology can be transferred either through a merger or a license, while market information is shared only through a merger. We show that the optimal merger policy differs under Cournot and Bertrand competition. If firms compete in Bertrand fashion, then mergers should never be allowed. If firms compete in Cournot fashion, then mergers are permitted if market volatility is high or if volatility is in the intermediate range and the size of innovations is large enough.

Number of Pages in PDF File: 21

Accepted Paper Series





Date posted: June 20, 2013  

Suggested Citation

Shieh, Shiou and Huang, Chi-Fei and Chen, Hsiao-Chi, To Merge or to License: Implications of Information Sharing for Optimal Merger Policy (July 2013). The Manchester School, Vol. 81, Issue 4, pp. 599-619, 2013. Available at SSRN: http://ssrn.com/abstract=2282327 or http://dx.doi.org/10.1111/j.1467-9957.2012.02301.x

Contact Information

Shiou Shieh (Contact Author)
National Taipei University - Department of Economics ( email )
No. 67, Section 3, Ming-Shang E. Road
Taipei 104
Taiwan
+886-2-25009127 (Phone)
+886-2-27853946 (Fax)
HOME PAGE: http://web.ntpu.edu.tw/~sshieh/data/Vitae/Vitae.pdf
Chi-Fei Huang
National Taipei University
Taipei
Taiwan
Hsiao-Chi Chen
National Taipei University - Department of Economics ( email )
Taipei
Taiwan
Feedback to SSRN


Paper statistics
Abstract Views: 155
Downloads: 0
Paper comments
No comments have been made on this paper

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.390 seconds