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It Is Generally Accepted That Horizontal Mergers (Between Competitors) Decrease  A 26% B 20 C 54%\begin{array}{ll}\text { A } & 26 \% \\\text { B } & 20 \\\text { C } & 54 \%\end{array}

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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:
 A 26% B 20 C 54%\begin{array}{ll}\text { A } & 26 \% \\\text { B } & 20 \\\text { C } & 54 \%\end{array} Is it possible that a merger between A and B would increase competition in the industry to the benefit of customers?


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