We extend the classic model of Perry and Porter (1985) to allow for cost-reducing innovations and in this setting we analyse the competitive effects of horizontal mergers. The analysis focuses on the innovation-sharing mechanism, whereby the merging firms share the results of their research, enlarging the base of application of inventions and hence the incentive to innovate. We show that if marginal costs are increasing, the innovation-sharing mechanism may more than offset the contractionary output effect that operates for any given state of the technology, making horizontal mergers pro-competitive even in the absence of synergies in production and research.

我们扩展了Perry和Porter（1985）的经典模型，以实现降低成本的创新，在这种情况下，我们分析了横向合并的竞争效果。分析着重于创新共享机制，通过这种机制，合并后的公司可以共享其研究成果，从而扩大了发明的应用基础，从而扩大了创新的动力。我们表明，如果边际成本增加，则创新共享机制可能会抵消在任何给定技术状态下产生的收缩产出效应，即使在生产和研究没有协同作用的情况下，横向合并也会提高竞争能力。