2009 Fiscal Year Final Research Report

Theoretical research on competition policy and innovation in open economies

Research Project

Project/Area Number	19730147
Research Category	Grant-in-Aid for Young Scientists (B)
Allocation Type	Single-year Grants
Research Field	Economic theory
Research Institution	Sophia University
Principal Investigator	YOMOGIDA Morihiro Sophia University, 経済学部, 准教授 (30286611)
Project Period (FY)	2007 – 2009
Keywords	経済理論 / 競争政策 / 国際貿易 / 直接投資 / 企業の合併・買収 / 技術開発
Research Abstract	I develop a model to examine the strategies of mergers and acquisitions in international oligopoly and use it to evaluate competition policies in terms of economic welfare. If synergies are sufficiently large in the development of cost-reducing technologies and a merging firm achieves a large reduction in production costs, then such a domestic merger could improve the social welfare of a domestic country. The possibility of the welfare improvement is more likely to arise as the degree of international market integration is higher. Government policy that blocks foreign acquisition of a domestic firm could reduce the welfare of the domestic country because of restricting the transfer of technology from the foreign acquiring firm to the domestic firm.

(4 results)