3 ms·
Thought experiment: what if we banned all acquisitions and mergers? A corporation could be like a "person" in that regard, strictly not for sale. I think the pr
by _xnmw 3y ago
Thought experiment: what if we banned all acquisitions and mergers? A corporation could be like a "person" in that regard, strictly not for sale. I think the process of determining which acquisitions or mergers are acceptable vs. not to be completely arbitrary and impossible to judge the correctness of.
- ilyt 3y agoI think banning all would be really hard to pull off (what if company owner dies/retires ? What if it is acquisition vs letting people go and bankrupcy?), but I'd very much like to see much stricter policies, especially on markets dominated by few big players already. There is nothing consumer friendly about big player buying out another part of the market and the consolidation will not be used to lower prices for the consumers, at the veryleast in long run
- Ekaros 3y agoThere is probably some threshold where consolidation is good for economy and consumers. This likely comes down to market share. Hard to say where upper bound would be, but 25-33% at least seems reasonable. If consolidation means more efficiency with less overheads and more buying power.
- ilyt 3y agoThat will be heavily industry-dependent. That kinds of consolidation gets you cartels like OPEC cutting production to keep the price of oil high, completely going around supply and demand. I think it's overall better to accept some inefficiency vs that.