Is lack of competition strangling the U.S. economy?
Harvard Business Review - 02/20/2018
A comprehensive review of retrospective studies of the thousands of mergers and joint ventures over the past 25 years by Northeastern University economist John Kwoka judged that antitrust authorities had been too tolerant both in letting certain types of mergers go unchallenged and in imposing conditions on mergers that were cleared. Prices following a subset of these mergers rose by an average of 4.3%, holding other factors constant, Kwoka found. The increases were particularly large in the airline and health care industries. “The diminished attention to mergers involving somewhat lower market shares and concentration appears to have resulted in approval of significantly more mergers that prove to be anticompetitive,” he wrote in a 2015 book.