【Micro】Merger and Entry Dynamics with Learning

  • 研討會日期 : 2024-05-03
  • 時間 : 14:30
  • 主講人 : Professor Jihong Lee
  • 地點 : Conference Room B110
  • 主持人 : Professor Changhyun Kwak
  • 演講者簡介 : Professor Jihong Lee received his PhD from the University of Cambridge in 2004. He is currently a professor at the Seoul National University. His research interests are game theory and mechanism design, industrial organization, and economics of innovation.
  • 演講摘要 : We study dynamic market competition between a monopoly incumbent and an entrant experimenting with disruptive innovation. The incumbent can pursue the uncertain innovation after acquiring the disruptor, who may be more productive and privately know its ability. Mergers generate synergies. We characterize perfect equilibria in Markov strategies on bargaining and R&D. The equilibrium path is determined by the interaction between market belief on the unobservable state and the distribution of private information. Asymmetric information generates failed mergers and buyout effects. Inefficient mergers arise when there are imperfect returns to R&D. Our results offer implications for policy on startup acquisitions.