We have achieved virtual price stability. One should not claim all these benefits from mergers alone. The benefits come from technological change, international competition, improved information systems. These are the basic forces behind mergers. But mergers have been an efficient vehicle for transmitting the benefits of these forces to consumers.
Mergers reflect basic forces that have been good for consumers.
An outstanding illustration is the impact of the merger movement in the U.S. airline industry. Because on the Cleveland-Baltimore run, Continental has to face the vigorous competition of Southwest Airlines. Another current example is telecommunications. The theory behind the Telecommunications Act of 1996 was to promote deregulation by fostering competition between the long-distance telephone companies and the Baby Bells. No such thing happened.