This study explores how mergers between companies of different sizes affect profits and overall welfare. By analyzing consumer demand factors and basic market data, the researchers found that a merger can only boost overall well-being if certain conditions are met. They also discovered that if the market size shrinks, mergers become more profitable for companies involved. In simpler terms, certain circumstances must be present for a merger to be good for everyone, and when markets get smaller, mergers tend to benefit the companies more.