It Is Generally Accepted That Horizontal Mergers (Between Competitors)decrease Competition

question 138

Essay

It is generally accepted that horizontal mergers (between competitors)decrease competition. Imagine a three firm industry in which the competitors' market shares are as follows:
Is it possible that a merger between A and B would increase competition in the industry to the benefit of customers?

---

Definitions:

Equivalent Payment

A payment amount that, when adjusted for interest and time, is equal in value to a different payment amount over a different time period.

Focal Date

A specific point in time that serves as a reference or target for events or operations.

Equivalent Payment

A term related to finance that typically involves finding a payment amount that equates to an equal value under different conditions.

Scheduled

Planned or organized for a certain time or date.