The study looks at how competition between companies impacts a supplier's investment choices and decisions to merge. Tougher competition in industries reduces profits for companies that buy supplies but can give suppliers more power when negotiating. Suppliers prefer competition when buyer companies have a lot of power. Whether a supplier chooses to join with a buyer company in a merger or stays separate depends on factors like demand, costs, investments, and bargaining tactics. Sometimes, a merger or partnership might stop other companies from entering the market or lead companies to split up or join together in new ways.