For this reason, economists are traditionally worried about potential horizontal mergers, but not vertical mergers, which are generally seen as a means of increasing overall welfare. This black and white analysis of horizontal and vertical mergers is not true in all cases. There are instances where horizontal mergers actually lead to an increase in welfare, just as there are cases in which vertical mergers lead to a loss in welfare through vertical constraints. I will start by distinguishing the difference between a vertical and a horizontal merger, examining cases in both, where welfare can either be gained or lost, thus showing that in order for policy makers to ensure and maintain competitive markets, which is desirable, it is necessary to examine each case of a potential merger individually, assessing the potential for both welfare, and shareholder value creation or destruction.