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Unlike the Staples - Office Depot merger, about which I couldn't care less, or a tech giant stifling smaller competition by buying it: These are two giants in
by AlbertCory 4y ago
Unlike the Staples - Office Depot merger, about which I couldn't care less, or a tech giant stifling smaller competition by buying it:
These are two giants in a very small oligopoly. I can't see any consumer benefit to a merger, and lots of potential for harm. This is what antitrust law is supposed to be all about.
I suppose you could argue they're in a declining business and need to cut costs. But I don't think either would admit to that.
- JumpCrisscross 4y ago> can't see any consumer benefit to a merge Economies of scale in production and distribution exist. > lots of potential for harm Yes. The scaling economies are dwarfed by the extractive ones.
- AlbertCory 4y agoI think I'm agreeing, depending on what you mean by "extractive." Scaling economies mainly benefit the shareholders. Possibly they lead to lower prices, or higher royalties to authors, but that's only speculative.
- wvenable 4y ago> Economies of scale in production and distribution exist. How is that a consumer benefit in the absence of competition?
- n4r9 4y agoExactly. There's no incentive to pass efficiency savings on to consumers vs just making more profit. Also, the types of efficiency savings that may be made by monopolies can be fragile. For example, implementing a standard component from one vendor across an entire industry renders that industry more vulnerable to bugs or faults on the component or the vendor going bankrupt.