Kurt Weber's post on the merger between Whole Foods and Wild Oats brings to mind the silliness that public policy can be. I also recall the fact that Staples and OfficeMax were not allowed to merge because that alliance would create "a monopoly" in the market of superstores that sell office supplies. (OfficeMax? Or was it Office Depot? My ignorance reminds me of how silly the government's case was: if you don't choose from one supplier, there's always another.)

Mergers are mostly if not entirely about federal policy, but of course state and even local governments can get into the action when nonsensical analysis is concerned. The Institute for Justice is a great resource for people fighting inane (and of course harmful) government policies. Some of my favorites include

Tennessee mandating that only funeral homes sell caskets, thus inflating funeral costs for grieving families.

Phoenix requiring that anyone peddling his services as someone who could take out weeds with the application of RoundUp first obtain a license as a commercial landscaper.

Minnesota requiring individuals performing the African craft of hair-braiding--and only that service--first obtain a cosmetology license.

It's sometimes said that we need government action to protect consumers. In fact, though, government regulation often serves anyone but the consumer.