In a study on competition between three companies, they invest in research & development (R&D) to cut costs and then consider merging. By examining different merger options, they see that mergers can be successful when R&D is effective, creating cost differences, and when power is fairly shared between merging partners. Whether firms do similar or different research, mergers work when R&D leads to savings and when power is balanced. Overall, successful mergers need high-tech R&D, creating cost gaps, and a fair share of power to spread merger benefits. The study looks at the impact of mergers on society and offers advice for policymakers on how to manage mergers better.