Essay on Merging and monopoly

Some merge for a useful purpose but this, in turn, results in negatively suppressing others and in the end, monopoly takes the course. The case of the merging of a giant telecommunication company, AT&T and T-Mobile is an example of a case that has raised many issues on the purpose of their merge and the aftermaths. According to the author of Market Power; Not an easy call, the merging would leave America with only three giants competing for the consumers of mobile services. These companies will be ATT, Verizon, and Sprint. According to the article, the merger could result in the company exerting its power of numbers to overpower its competitors thus remaining as a monopoly. Most people are not willing to change their companies.

Thus it will be difficult to acquire new consumers (Not an easy call, 2011). Merging will result in a monopoly that will enable companies to appreciate market power. For him, he is not ready to shift to AT&T even though there will be beneficial gains at last. In my opinion, merging of AT&T and T-Mobile could be either beneficial or become a big blow to the consumers. The concept of a competitive market is also mentioned where it involves several companies offering similar services and compete to secure more consumers. Other concepts mentioned by Annie are oligopoly and duopoly (Not an easy call, 2011). Oligopoly involves a market where there are few competitors in a large industry while duopoly only two producers control the market and there are no other competitors (Chapter 25: Oligopoly, Duopoly, & Monopolistic Competition - Microeconomics 201 with Scales at Southside Virginia Community College – StudyBlue, 2018).

She has also mentioned the horizontal acquisition technique of merging which is a situation where one company such as AT&T acquires another company offering similar services such as T-Mobile. Discussion From the reading of the article, several points arise. Competition makes the market healthy, and customer exploitation is minimal. Consumers rarely shift from one company to another. There are relative rates of transactions that consumers can handle comfortably. Merging of companies does not guarantee new customers. Conclusion Merging of AT&T and T-Mobile could change the face of telecommunication industry in the USA. economist. com/free-exchange/2011/03/22/not-an-easy-call Chapter 25: Oligopoly, Duopoly, & Monopolistic Competition - Microeconomics 201 with Scales at Southside Virginia Community College - StudyBlue. Retrieved from https://www. studyblue. com/notes/note/n/chapter-25-oligopoly-duopoly-monopolistic-competition/deck/6145915 Passy, J.