Keywords: market power, branding, economies of scale, synergies
Comments on Kjell Roland's and Erik Sorensen's paper
There are limits to the economies of scale in gas and electricity, but substantial synergies can be attained through mergers. It would seem that Roland and Sorensen exaggerate the prospects for branding in electricity and gas. But I concur with the authors that mega-mergers are likely to go on. Market power will increase in consequence and competition authorities will be kept busy.