Merger is an obvious method used to obtain a dominant market position. The formation of dominant firms by merger was an important motive for the passage of the Sherman act, which is after all an antitrust act. As we will see in chapter 10, the antitrust laws now place restrictions on such mergers. But there [...]

As noted in a recent survey, dominance is a power relation between two agents in which the dominator restricts the actions of the dominated. But the dominant firm of limit price models in quite restricted in its actions toward actual or potential fringe rivals.
The dominant firm has one weapon with which it can affect their [...]