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Preprint

Mergers, innovation, and inequality

  • Cozzi, Guido Istituto di ricerche economiche (IRE), Facoltà di scienze economiche, Università della Svizzera italiana, Svizzera
  • Tarola, Ornella Istituto di ricerche economiche (IRE), Facoltà di scienze economiche, Università della Svizzera italiana, Svizzera
    2003

14 p

Growth
Firm-size
Innovation process
Antitrust policy
English This paper presents a standard endogenous growth framework in which the source of growth is represented by vertical innovation. The crucial assumption we introduce is that there is a positive information-gap concerning the discovery of innovation. The aim of reducing the information dissemination lag provides incentives for firms to decide to merge their research efforts. At the same time we find that the skilled/unskilled wage gap is strongly related to this phenomenon. We prove that changing antitrust attitudes toward effciency motivated mergers in contestable industries may simultaneously explain observed changes in the industry structure, in qualitative innovation, in wage inequality, and in labor supply composition.
Language
  • English
Classification
Economics
License
License undefined
Identifiers
  • RERO DOC 5205
  • ARK ark:/12658/srd1317879
Persistent URL
https://n2t.net/ark:/12658/srd1317879
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