Tommaso Valletti
@tomvalletti.bsky.social
Once properly interpreted, econ theory overwhelmingly supports the ITOH.
👉 Without synergies/spillovers, mergers harm consumers.
So: weakening merger control in the name of innovation is misguided.
The economics is clear — the ITOH still stands.
📄 Article www.sciencedirect.com/science/arti...
👉 Without synergies/spillovers, mergers harm consumers.
So: weakening merger control in the name of innovation is misguided.
The economics is clear — the ITOH still stands.
📄 Article www.sciencedirect.com/science/arti...
The innovation theory of harm in merger control: Some clarifications
Recent literature has analyzed the unilateral effects of mergers on investment and innovation. This note explores the Innovation Theory of Harm from a…
www.sciencedirect.com
August 18, 2025 at 11:36 AM
Once properly interpreted, econ theory overwhelmingly supports the ITOH.
👉 Without synergies/spillovers, mergers harm consumers.
So: weakening merger control in the name of innovation is misguided.
The economics is clear — the ITOH still stands.
📄 Article www.sciencedirect.com/science/arti...
👉 Without synergies/spillovers, mergers harm consumers.
So: weakening merger control in the name of innovation is misguided.
The economics is clear — the ITOH still stands.
📄 Article www.sciencedirect.com/science/arti...
My paper revisits the Innovation Theory of Harm (ITOH): mergers can reduce firms’ incentives to invest & innovate.
This theory has shaped major EU merger cases in telecoms & agro-chemicals.
What I find:
This theory has shaped major EU merger cases in telecoms & agro-chemicals.
What I find:
August 18, 2025 at 11:31 AM
My paper revisits the Innovation Theory of Harm (ITOH): mergers can reduce firms’ incentives to invest & innovate.
This theory has shaped major EU merger cases in telecoms & agro-chemicals.
What I find:
This theory has shaped major EU merger cases in telecoms & agro-chemicals.
What I find:
Findings: Ex post actions against consummated mergers exist but do not have a good record of success.
Implications: postmerger policy ineffectiveness needs a more stringent ex ante policy in order to achieve the right balance.
Link to the pre-print:
papers.ssrn.com/sol3/papers....
Ciao
2/2
Implications: postmerger policy ineffectiveness needs a more stringent ex ante policy in order to achieve the right balance.
Link to the pre-print:
papers.ssrn.com/sol3/papers....
Ciao
2/2
July 1, 2025 at 3:41 PM
Findings: Ex post actions against consummated mergers exist but do not have a good record of success.
Implications: postmerger policy ineffectiveness needs a more stringent ex ante policy in order to achieve the right balance.
Link to the pre-print:
papers.ssrn.com/sol3/papers....
Ciao
2/2
Implications: postmerger policy ineffectiveness needs a more stringent ex ante policy in order to achieve the right balance.
Link to the pre-print:
papers.ssrn.com/sol3/papers....
Ciao
2/2
FBP muted price competition among bookshops. But competition was still at work and turned to non-price aspects that overall have benefited readers in the Italian book market.
The paper is dedicated to Mario a dear friend who passed away far too soon. ❤️
Read at: ow.ly/BnZQ50VkExP
Ciao/Fin
The paper is dedicated to Mario a dear friend who passed away far too soon. ❤️
Read at: ow.ly/BnZQ50VkExP
Ciao/Fin
Cultural exception? The impact of price regulation on prices and variety in the market for books
Fixed book price (FBP) agreements are a form of resale price maintenance applied to books in various countries. FBP restricts retail price competition with the aim of promoting book production variety. Yet, despite its popularity and adoption in many countries, there is no empirical evidence on its effects. We offer systematic evidence on the impact of FBP on book variety and prices using a detailed new dataset from Italy that includes the universe of books published and bought, before and after the introduction of FBP. Our results indicate that FBP raises prices without significantly affecting the number of new books published in the marketplace. However, it also increases considerably the variety of books actually bought, especially from independent bookstores. We estimate a structural model of demand that accounts for both effects, finding that consumers overall benefited from the regulation.
ow.ly
March 21, 2025 at 10:40 AM
FBP muted price competition among bookshops. But competition was still at work and turned to non-price aspects that overall have benefited readers in the Italian book market.
The paper is dedicated to Mario a dear friend who passed away far too soon. ❤️
Read at: ow.ly/BnZQ50VkExP
Ciao/Fin
The paper is dedicated to Mario a dear friend who passed away far too soon. ❤️
Read at: ow.ly/BnZQ50VkExP
Ciao/Fin
We also find that employment increased, and used LLM to look at Google reviews & ratings about bookshops.
Readers appreciate discovery, suggestions & events organized by bookshops. This is in line with the “service effort” mechanism in settings where otherwise there would be free-riding. 5/
Readers appreciate discovery, suggestions & events organized by bookshops. This is in line with the “service effort” mechanism in settings where otherwise there would be free-riding. 5/
March 21, 2025 at 10:40 AM
We also find that employment increased, and used LLM to look at Google reviews & ratings about bookshops.
Readers appreciate discovery, suggestions & events organized by bookshops. This is in line with the “service effort” mechanism in settings where otherwise there would be free-riding. 5/
Readers appreciate discovery, suggestions & events organized by bookshops. This is in line with the “service effort” mechanism in settings where otherwise there would be free-riding. 5/
Not really. We also find that the *variety* of books purchased by readers went up. Books that had a near-zero market share before FBP... started being purchased afterwards.
So there is a possible trade-off! 4/
So there is a possible trade-off! 4/
March 21, 2025 at 10:40 AM
Not really. We also find that the *variety* of books purchased by readers went up. Books that had a near-zero market share before FBP... started being purchased afterwards.
So there is a possible trade-off! 4/
So there is a possible trade-off! 4/
Indeed, comparing with the same Italian books sold in Switzerland at the time (Italian is an official language there too! And there is no regulation of books in CH), final prices to readers went up, especially among independent bookshops that are very common in ITA.
End of the story? 3/
End of the story? 3/
March 21, 2025 at 10:40 AM
Indeed, comparing with the same Italian books sold in Switzerland at the time (Italian is an official language there too! And there is no regulation of books in CH), final prices to readers went up, especially among independent bookshops that are very common in ITA.
End of the story? 3/
End of the story? 3/
A regulation (FBP) was introduced in Italy in 2011 and allowed publishers to set the price of books while bookshops were restrained from discounting them.
This sounds pretty bad for readers. 2/
This sounds pretty bad for readers. 2/
March 21, 2025 at 10:40 AM
A regulation (FBP) was introduced in Italy in 2011 and allowed publishers to set the price of books while bookshops were restrained from discounting them.
This sounds pretty bad for readers. 2/
This sounds pretty bad for readers. 2/
Result:
Large increase in Chinese apps and innovation in China
And also:
Large increase of Chinese apps in *foreign* Asian countries
There is much more in her paper. You can read it here 👇
dropbox.com/scl/fi/b0i5w...
Large increase in Chinese apps and innovation in China
And also:
Large increase of Chinese apps in *foreign* Asian countries
There is much more in her paper. You can read it here 👇
dropbox.com/scl/fi/b0i5w...
February 7, 2025 at 3:35 PM
Result:
Large increase in Chinese apps and innovation in China
And also:
Large increase of Chinese apps in *foreign* Asian countries
There is much more in her paper. You can read it here 👇
dropbox.com/scl/fi/b0i5w...
Large increase in Chinese apps and innovation in China
And also:
Large increase of Chinese apps in *foreign* Asian countries
There is much more in her paper. You can read it here 👇
dropbox.com/scl/fi/b0i5w...
Well, no. We test that, and find no evidence. It’s in the paper, worth reading it first perhaps
December 17, 2024 at 12:05 PM
Well, no. We test that, and find no evidence. It’s in the paper, worth reading it first perhaps
Incidentally, a minor detail: it’s not what we find
December 17, 2024 at 11:00 AM
Incidentally, a minor detail: it’s not what we find