Briefcase

Briefcase: Corporate Mergers and Competition

Guest, Professor Darren Bush

 

Competition assures markets function efficiently. Corporate mergers can stifle competition, especially in concentrated markets such as airlines.

Professor Darren Bush, with The University of Houston Law Center focuses on the intersection of antitrust law and government regulation and the effect on market competition. He explains how large airline mergers are related to the bumping of airline passengers.

“Many believe that airline mergers, and the resulting decrease in competition, have led to lower-quality customer service, increased fees, smaller seats, and daunting travel experiences,” Professor Bush said.

“Law can alleviate the perils of flying by increasing competition or offering greater regulatory protection where there is little competition,” Bush continued. “Antitrust law and enforcement aimed at adding more carriers to the skies would give frustrated passengers other, possibly better, travel options. Laws promoting industry regulation would, at least, give airline customers confidence in government- established minimum service standards until competition develops.”  

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