Mergers could undermine competition and harm consumers, study finds.
The article explores how mergers and collusion in business can affect competition policy. It suggests that firms may merge to sustain collusion when they can't do so alone. If collusion detection improves, firms may merge to continue colluding. When cost savings from mergers are small, restricting mergers can deter collusion. Mergers can have a bigger impact on competition than expected, affecting welfare.