I think the merge model is far superior, it's more flexible, users can work in parallel, never waiting for one another, and the amount of time that takes to resolve conflicts is far less than the time lost by a locking model. Most of the time, changes made to a file don't conflict and can be automatically merged.
That's probably why it's the default model in most modern source control systems.
But in the end, the critical factor is always user communication. When users communicate poorly, conflicts for sure will increase.