Abstract
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.
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 language | English |
|---|---|
| Pages (from-to) | 645 - 659 |
| Journal | Review of Economics and Statistics |
| Volume | 89 |
| Issue number | 4 |
| Publication status | Published - 1 Aug 2007 |
Austrian Classification of Fields of Science and Technology (ÖFOS)
- 502013 Industrial economics