The Monopolisation of Triopoly

The article dwells on the possibility of monopolising an industry through acquisitions and takeovers of rival firms under conditions when authorities regulating the market are inactive. Extending the approaches that are present in the literature on the subject the authors attempt to analyse the existing triopoly under which one of the firms takes over another rival and thus could become a market leader in the sense of Stackelberg. The authors provide a proof that under such conditions it is possible that a single company is in position to acquire competing firms. This analysis also shows that the market forces can not, on their own, prevent takeovers to happen, which in turn lead to the monopolisation of an industry. The conclusion therefore is that antimonopoly authorities should use their force to prevent acquisitions and takeovers in industries with triopolistic structures.