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Cox Comm. is considering merging with Dish Network because together they would have a 24% market share (see table below). You have been informed that
Cox Comm. is considering merging with Dish Network because together they would have a 24% market share (see table below). You have been informed that that any post-merger four firm concentration ratio greater than 75% is considered too concentrated, prompting the Federal Trade Commission and the Department of Justice to dis-allow a merger. If the post-merger four firm concentration ratio is between 60% and 75%, then more information is necessary to determine if the merger will be allowed to take place. If the post-merger four firm concentration ratio is less than 60%, then the merger will very likely be allowed. Consider the following current market share data: Comcast 21% Direct TV 17% Time Warner 16% Dish Network 13% Charter Comm. 12% Cox Comm. 11% all others 10% Based on this evidence, what will likely be the regulatory response if a merger were to take place? Group of answer choices More information is necessary to determine if the merger will be allowed or not The merger will dis-allowed The merger will be allowed
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