Mergers of Complementary Goods May Harm Consumers, Antitrust Policies Flawed
Antitrust policies assume that mergers between big companies will benefit consumers, but mergers of firms with market power in different areas don't always lead to better outcomes. The study shows that when powerful companies merge to sell complementary goods, it's important to consider how they competed before the merger and what consumers prefer. This helps predict the effects of the merger accurately.