4 ms·
I'm not sure if economists have developed some sort of model that would show when a consolidation would be beneficial in the long term for consumers, but I'd su
by baron816 7y ago
I'm not sure if economists have developed some sort of model that would show when a consolidation would be beneficial in the long term for consumers, but I'd sure like to see one. We tend to not like it when firms collude with each other to control prices or stave off competition, in fact, we make it illegal to do so. But we rarely give them much trouble when they want to merge, which really isn't any different from collusion, don't you think?
- matty_boy 7y agoIt's no different at all. Indeed the reason mergers are allowed but not open collusion is just to satisfy public opinion.
- casmclas 7y agoI think there's differences of attention that make it different. When there's only one brand name, it invites a competitor from another market in. When there's three, but they all have the same policy, that's a bit different.