Hmm. I model “targetting the merger” as worring about the path, where “targetting the resulting structure” would be preferable, whether it occurs by growth, acquisition, or initial setup.
I see “Mergers make markets less competitive” as biasing toward the status quo, and privileging the same result created by non-merger mechanisms. I’m curious whether I’m wrong on this, and you see the merger path to that structure as the main problem, or whether I’m misunderstanding the reasons for your proposal.
If you have a market where you have a large company with a lot of market power but that company is run relatively badly in a world without mergers that large company will lose. With mergers, it can be possible for the badly run company to just buy off potential competitors.
I want people who are able to effectively make investments in technology to be in control of large amounts of capital instead of people who are clever about company politics and merging being in control of that much control.
We need companies like Intel who can build a 20 billion dollar microchip factory and for that reason having laws that directly forbid large companies would create a lot of damage.
Hmm. I model “targetting the merger” as worring about the path, where “targetting the resulting structure” would be preferable, whether it occurs by growth, acquisition, or initial setup.
I see “Mergers make markets less competitive” as biasing toward the status quo, and privileging the same result created by non-merger mechanisms. I’m curious whether I’m wrong on this, and you see the merger path to that structure as the main problem, or whether I’m misunderstanding the reasons for your proposal.
If you have a market where you have a large company with a lot of market power but that company is run relatively badly in a world without mergers that large company will lose. With mergers, it can be possible for the badly run company to just buy off potential competitors.
I want people who are able to effectively make investments in technology to be in control of large amounts of capital instead of people who are clever about company politics and merging being in control of that much control.
We need companies like Intel who can build a 20 billion dollar microchip factory and for that reason having laws that directly forbid large companies would create a lot of damage.