Monopolistic Mergers Threaten Consumer Welfare, Benefit Rival Firms
This study looks at how mergers between similar companies can affect prices and profits in a market. When merged companies can sell products together, prices stay fair. But if they can't sell products together and one company is very powerful, prices might go up after the merger. Without cost savings, prices for consumers usually stay the same. Also, if merged companies raise retail prices, rival companies can either benefit or lose, and a merger that hurts the store might actually be good for everyone.