At least this first provision applies to horizontal mergers
, because only they increase market concentration.
"But in fact, CVS and Aetna do operate as rivals in some of the same markets, raising substantial concerns that are specific to horizontal mergers
. A merger of these two rivals would risk a substantial reduction of competition in the stand-alone Medicare Part D prescription drug plan market and the pharmacy benefit management services market." The AMA analysis also notes that Aetna and CVS each have their own share of the highly concentrated market for PBM services.
While many vertical mergers, like many horizontal mergers
, may entail efficiency benefits, the EDM theory does not prove that vertical mergers are almost always procompetitive.
A commonly held view among economists is that, in the absence of efficiency gains, horizontal mergers
between oligopolistic firms raise prices.
Its CEO Kwon Young-soo claims that acquisitions in the telecom sector should be regarded as horizontal mergers
simply because the entities going for mergers and acquisitions (M and As) are operating in the same industry.
Consolidation will include horizontal mergers
to create entities with larger market share and greater economies of scale, as well as vertical mergers to enhance cost efficiencies along the supply chain and smooth profit volatility.
This indicates the role of scale efficiency as a dominant source of improvement in the inefficiency of hospitals involved in horizontal mergers
, but not for technical efficiency.
and affiliations (between like organizations) help to create more efficient and coordinated organizations that can reduce administrative costs, and share limited clinical resources and expertise across two or more hospitals or providers.
So-called "horizontal mergers
" of hospitals in the same geographic market have garnered significant attention from researchers and regulators alike.
Part 4 outlines the most salient points the study makes about (I) coordinated conduct and oligopolistic pricing, (2) predatory pricing and predatory investments, (3) horizontal mergers
and acquisitions, (4) conglomerate mergers, and (5) various pricing-techniques, contract-clause and sales-policy surrogates for vertical integration, and vertical mergers and acquisitions.
proposition in the antitrust law of horizontal mergers
. It stands for
& acquisitions into adjacent markets that are less correlated with crop prices, such as grain storage and animal protein production systems.