Spoiling synergy

Roland Bel; Vladimir Smirnov; Andrew Wait

doi:10.1016/j.econlet.2016.04.002

Spoiling synergy

Roland Bel^*, Vladimir Smirnov, Andrew Wait

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

Abstract

Assets may be complementary - producing more return together-but substitute at the margin - generating lower marginal return when assets are together, leading agents to underinvest. When the effort effect dominates the synergy effect, merging complementary assets may not be efficient.

Original language	English
Pages (from-to)	80-83
Number of pages	4
Journal	Economics Letters
Volume	143
DOIs	https://doi.org/10.1016/j.econlet.2016.04.002
Publication status	Published - 1 Jun 2016
Externally published	Yes

Keywords

Complementarity
Mergers
Synergy

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10.1016/j.econlet.2016.04.002

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title = "Spoiling synergy",

abstract = "Assets may be complementary - producing more return together-but substitute at the margin - generating lower marginal return when assets are together, leading agents to underinvest. When the effort effect dominates the synergy effect, merging complementary assets may not be efficient.",

keywords = "Complementarity, Mergers, Synergy",

author = "Roland Bel and Vladimir Smirnov and Andrew Wait",

year = "2016",

month = jun,

day = "1",

doi = "10.1016/j.econlet.2016.04.002",

language = "English",

volume = "143",

pages = "80--83",

journal = "Economics Letters",

issn = "0165-1765",

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T1 - Spoiling synergy

AU - Bel, Roland

AU - Smirnov, Vladimir

AU - Wait, Andrew

PY - 2016/6/1

Y1 - 2016/6/1

N2 - Assets may be complementary - producing more return together-but substitute at the margin - generating lower marginal return when assets are together, leading agents to underinvest. When the effort effect dominates the synergy effect, merging complementary assets may not be efficient.

AB - Assets may be complementary - producing more return together-but substitute at the margin - generating lower marginal return when assets are together, leading agents to underinvest. When the effort effect dominates the synergy effect, merging complementary assets may not be efficient.

KW - Complementarity

KW - Mergers

KW - Synergy

UR - https://www.scopus.com/pages/publications/84962888038

U2 - 10.1016/j.econlet.2016.04.002

DO - 10.1016/j.econlet.2016.04.002

M3 - Article

AN - SCOPUS:84962888038

SN - 0165-1765

VL - 143

SP - 80

EP - 83

JO - Economics Letters

JF - Economics Letters

ER -

Spoiling synergy

Abstract

Keywords

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