This research looks at how mergers between companies affect prices and profits. They used economic models to show that mergers can be profitable under specific conditions. When all companies are limited in how much they can produce, mergers can increase prices and profits. Also, if products are different enough and there are few competitors, mergers can make money. Efficiency gains from mergers can either lower or raise prices, depending on how similar the products are. The findings suggest that traditional ways of predicting how prices will change after a merger might not always be accurate, especially when considering efficiency improvements.