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 policy perspective, clarifying possible conceptual misunderstandings and identifying directions for future research. • The Innovation Theory of Harm has drawn strong interest in policy and literature. • I clarify key modeling assumptions behind the Innovation Theory of Harm. • I revisit earlier findings through the lens of these assumptions. • Without synergies or spillovers, mergers hurt consumers in innovation–product rivalry models.