Mergers have benefits and costs that, in theory, could lead to net benefits or net harms. Comcast’s acquisition of TWC has generated a level of controversy consistent with the $45 billion price. Nevertheless, the question regulators and antitrust authorities must answer is the same as it is for any merger: do the expected benefits that flow from increased efficiencies outweigh the chances that the merger could increase the incentive and ability of the combined firm to behave in anticompetitive behavior and the magnitude of those effects. This paper explored the various arguments for and against the merger.
