Market Power versus Efficiency Effects of Mergers and Research Joint Ventures: Evidence from the Semiconductor Industry

Klaus Gugler, Ralph Siebert

Publication: Scientific journalJournal articlepeer-review


Merger control authorities may approve a merger based on a so-called "efficiency defence". An
important aspect in clearing mergers is that the efficiencies need to be merger-specific. Joint
ventures, and in particular research joint ventures (RJVs), may achieve comparable efficiencies
possibly without the anti-competitive (market power) effects of mergers. We present evidence for
the semiconductor industry that RJVs indeed represent viable alternatives to mergers. We
empirically account for the endogenous formation of mergers and RJVs.
Original languageEnglish
Pages (from-to)645 - 659
JournalReview of Economics and Statistics
Issue number4
Publication statusPublished - 1 Aug 2007

Austrian Classification of Fields of Science and Technology (ÖFOS)

  • 502013 Industrial economics

Cite this