National mergers more likely to spark conflicts in larger countries.
The size of a company and the size of the market affect whether companies in different countries decide to merge. In a model with two countries and two companies in each, it was found that larger companies are more likely to merge than smaller ones. However, the government of a larger country is more likely to block a merger than the government of a smaller country. This means that conflicts between governments and companies over mergers are more common in larger countries than in smaller ones.