Work

The innovation theory of harm in merger control: Some clarifications

Year: 2025

Type: article

Abstract: Recent literature has analyzed the unilateral effects of mergers on investment and innovation. This note explores the Innovation Theory of Harm from a policy perspective, clarifying possible conceptual misunderstandings and identifying directions for future research. • The Innovation Theory of Harm has drawn strong interest in policy and literature. • I clarify key modeling assumptions behind the Innovation Theory of Harm. • I revisit earlier findings through the lens of these assumptions. • Without synergies or spillovers, mergers hurt consumers in innovation–product rivalry models.

Source: Economics Letters

DOI: 10.1016/j.econlet.2025.112556

Author: Tommaso Valletti

Institutions: Centre for Economic Policy Research, Imperial College London, Norwegian School of Economics

Language: English

Topic: Merger and Competition Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $3,030