Merger are an important area of public policy where microeconomic theory and econometrics plays a key role.
It is the easiest way that government can affect the evolution of market structure, vast majority of merger evaluation is prospective.
for business leaders, it is important to understand how merger policy works, and whether it will conflict with business objectives
for shareholders it is important to understand whether the proposed mergers are good idea.
Mostly, the Merger policy (action), like the Horizontal Merger, aims to raise the consumer surplus.