RT Journal Article
T1 The Welfare Impact of New Firm Acquisitions.
A1 Gautier, Luis
A1 Fikru, Mahelet G.
K1 Sociedades - Fusión
K1 Sociedades - Aspectos sociales
K1 Capitalistas y financieros
AB Despite a large volume of studies examining the welfare impact of acquisitions, there are notmany studies that model the welfare impact of acquiring new firms. This study offers a reviewof the literature and presents a framework for evaluating the welfare impact of the acquisitionof new firms. Our results suggest that the acquisition of new firms is not necessarily welfarereducing as long as (1) the number of new firm entry is within a given range (i.e., not too manyand not too few), (2) sufficient oligopolistic interdependence is present (output response fromfirms not involved in the acquisition or outsider firms), and (3) there are cost symmetries.The key factor that makes the privately beneficial acquisition welfare enhancing is the profitopportunity for outsider firms and oligopolistic interdependence, given the restriction onthe number of new firms. Our findings imply that, under the given conditions, start-upacquisitions may not need to be restricted by merger control policies. Our literature reviewand model highlight the need for regulators to pay attention to the specific number of newfirms that enter a given market when there are no cost synergies.
PB Springer Nature
YR 2022
FD 2022
LK https://hdl.handle.net/10630/31869
UL https://hdl.handle.net/10630/31869
LA eng
NO Gautier, L., Fikru, M.G. The Welfare Impact of New Firm Acquisitions. J Ind Compet Trade 22, 535–559 (2022). https://doi.org/10.1007/s10842-022-00393-9
NO Política de acceso abierto tomada de: https://v2.sherpa.ac.uk/id/publication/17386
DS RIUMA. Repositorio Institucional de la Universidad de Málaga
RD 25 ene 2026