Cross ownership and merger under technology adoption
Abstract
Purpose
This paper aims to consider the effects of a merger on technology adoption and welfare in the presence of passive cross ownership. Merger increases investments in process technology and may increase welfare. The results are important for antitrust policies and suggest that the antitrust authorities may not need to be too concerned about mergers in industries with cross ownership.
Design/methodology/approach
Game-theoretic analysis.
Findings
Merger increases investments in process technology and may increase welfare.
Originality/value
To the best of the author’s knowledge, this study is original.
Keywords
Acknowledgements
The author would like to thank two anonymous referees of this journal for helpful comments and suggestions. The usual disclaimer applies.
Citation
Mukherjee, A. (2024), "Cross ownership and merger under technology adoption", Indian Growth and Development Review, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IGDR-10-2023-0162
Publisher
:Emerald Publishing Limited
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