Mergers Fuel Collusion, Harm Consumers, Experimental Study Reveals
The article "Mergers, Asymmetries and Collusion: Experimental Evidence" explores how mergers between companies, differences in size, and collusion among firms can affect competition. The researchers conducted experiments to see how these factors influence market outcomes. They found that when larger companies merge, it can lead to higher prices for consumers. Additionally, when firms collude to fix prices, it can harm competition and result in higher prices as well. These findings suggest that mergers and collusion can have negative effects on market competition and consumer welfare.