THE PROCESS OF INDUSTRIAL CONCENTRATION.

The article examines the process of industrial concentration in the United States. During the later stages of industrialization the variety of methods of bringing about concentration has been considerably increased. One method of concentration is the merger. The merger is probably a more sensitive response because business men are more willing to resort to it because it casts the costs of shifting business in the form of a capital sum. Price cutting does not always operate as effectively as is suggested by many defences of free competition to select for survival in each industry, during periods of transition, the most efficient firms. Where concentration of control is aimed at securing power over prices rather than improving methods of production, and price competition is selected as the means of attaining control, purchasers benefit during the period of concentration. Existing social policy permits the concentration of power to deal with the problems in industries where price leadership has emerged.