We examine the role of mergers in the formation and statistics of galaxies and clusters of galaxies. First steps in this direction were carried out by Shaviv & Shaviv (1993, ApJ.Lett., 412, L25) where the OD case was treated. The work is extended to examine the effect of self gravity. Thus, we essentially explore the combined effect of violent relaxation and mergers on the resulting structure and mass distribution of galaxies in clusters of galaxies. We developed a numerical method to treat the spherical 2D problem (radial position and velocity) of the evolution of a collapsing cluster of gas clouds (Shaviv & Shaviv, 1995, ApJ., 448, 514).