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Abstract Cavenaile et al. (2021) study the long-run implications of anti-trust policy for innovation, output and welfare using a general equilibrium model. Their approach differs from the much of the existing… Click to show full abstract
Abstract Cavenaile et al. (2021) study the long-run implications of anti-trust policy for innovation, output and welfare using a general equilibrium model. Their approach differs from the much of the existing literature that focuses on short-run, partial equilibrium effects. Their model combines three key elements: (i) endogenous growth with vertical innovations; (ii) oligopolistic competition in the product market; (iii) endogenous M&As. I will briefly discuss their paper and then compare it to Mermelstein et al. (2020) who also study optimal merger policy in a dynamic model.
Journal Title: Journal of Monetary Economics
Year Published: 2021
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