- Cafe Hayek - http://cafehayek.com -
Posted By Don Boudreaux On July 7, 2007 @ 9:10 am In Antitrust | Comments Disabled
What is it with antitrust authorities and supermarket mergers ? Here’s a letter that I sent today to the Wall Street Journal:
Arnie Celnicker argues  that the Federal Trade Commision’s challenge of Whole Food’s merger with Wild Oats is justified by various “market nuances” (Letters, July 7). Among these is the fact that “financial markets have deprived Wild Oats of the capital to compete head on with Whole Foods” and the fact that consumer demand for organic foods is skyrocketing.
How in the name of free-range chicken do these facts justify government blocking this merger? Precisely because consumers now want more and more organic products, financial markets have every incentive to invest in firms catering to this growing market if these firms are well-managed. Wild Oats’ inability to get adequate private financing in this growing market is strong evidence that its assets now are poorly managed. It’s only natural that Whole Foods spots and seizes this opportunity to use these assets more effectively at meeting consumer demands. The FTC’s interference – an unwholesome additive to the market – jeopardizes consumer well-being.
Donald J. Boudreaux
Article printed from Cafe Hayek: http://cafehayek.com
URL to article: http://cafehayek.com/2007/07/unwholesome-ant.html
URLs in this post:
 antitrust authorities and supermarket mergers: http://home.comcast.net/~SCADS/vonsgro.htm
 Arnie Celnicker argues: http://online.wsj.com/page/2_0048.html
 Image: http://www.blinklist.com/index.php?Action=Blink/addblink.php&Url=http%3A%2F%2Fcafehayek.com%2F2007%2F07%2Funwholesome-ant.html&Title=Unwholesome%20Antitrust
 Tweet: https://twitter.com/share
Copyright © 2011 CafeHayek.com. All rights reserved.