It Is Generally Accepted That Horizontal Mergers (Between Competitors) Decrease $\begin{array}{ll}\text { A } & 26 \% \\\text { B } & 20 \\\text { C } & 54 \%\end{array}$

Essay

It is generally accepted that horizontal mergers (between competitors) decrease competition. Imagine a three firm industry in which the competitors' market shares are as follows:
$\begin{array}{ll}\text { A } & 26 \% \\\text { B } & 20 \\\text { C } & 54 \%\end{array}$ Is it possible that a merger between A and B would increase competition in the industry to the benefit of customers?