selling a product that ends up losing money. A merger between two companies can sometimes lead to a clash
262 11 • Monopoly and Antitrust Policy

of corporate personalities that makes both firms worse off. However, the fundamental belief behind a market-

oriented economy is that firms, not governments, are in the best position to know if their actions will lead to

attracting more customers or producing more efficiently.

Government regulators agree that most mergers are beneficial to consumers. As the Federal Trade

Commission has noted on its website (as of November, 2013): “Most mergers actually benefit competition and

consumers by allowing firms to operate more efficiently.” At the same time, the FTC recognizes, “Some

[mergers] are likely to lessen competition. That, in turn, can lead to higher prices, reduced availability of goods

or services, lower quality of products, and less innovation. Some mergers create a concentrated market, while
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