ECON 102 ONLINE ASSIGNMENT #9 ANTI-TRUST CASE

1. We have discussed that before firms can merge now they must get approval from the Department of Justice. Do some research and answer the questions below concerning a recent (from 1990 to the present) merger that was either approved or NOT approved by the Department of Justice. {Do not use the case of United Airlines and Continental Airlines since it is referenced below.}

a. What two companies intended to merge?

b. What were some of the reasons to oppose this merger? Try to be specific and provide data where you can. Also address why the merger may be harmful to consumers.

c. What were the reasons given by the merging firms that the merger should be allowed?

d. Ultimately, was the merger approved or not approved?

e. What were the reasons the merger was approved or not approved?

f. To get approval to merge, did the firms have to agree to certain conditions? For example, when United Airlines and Continental merged, they were forced to give up some of their gates at one of the major airports.

g. Do you agree with the decision of the Department of Justice or not? Why?