This study looks at why companies might want to take over others in industries where a few big players compete. Unlike earlier studies, it looks at how people inside and outside the industry could benefit from more companies merging together. The researchers used a model to compare takeover incentives between two types of competition – one where companies set prices first and then produce (Cournot) and another where they decide on prices afterward (Bertrand). They found that when products work well together, takeovers are more likely in Cournot competition. But in Bertrand competition, when products are more similar, takeovers are more probable. Essentially, as products become closer substitutes, it’s more likely for one company to take over another in Bertrand competition and less likely in Cournot competition.