Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Howard and Rush each have very popular radio programs. Their programs happen to be the two most popular ones for listeners who value hearing provocative

Howard and Rush each have very popular radio programs. Their programs happen to be the two most popular ones for listeners who value hearing provocative and outrageous statements. The two programs are provided free of charge to listeners, with revenue being earned from advertisers. The two programs plan to merge, and you are an attorney analyzing this proposed transaction for the FTC. Although the parties claim that Howard and Rush do not really compete against one another, your investigation has found that they do (for example, when Howard is on vacation the audience share of Rush increases dramatically, and vice-versa). Economists working for Howard and Rush argue —convincingly, it turns out—that, post-merger, listeners will continue to receive both programs free of charge. Moreover, your investigation has found (surprisingly) that no advertiser would be willing to pay more to advertise on one of these programs even if the other disappeared. 

Is there any cause for concern over potential anticompetitive unilateral effects from this merger? If not, why not? If so, how?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Based on the information provided it appears that there may not be a significant cause for concern over potential anticompetitive unilateral effects r... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Smith and Roberson Business Law

Authors: Richard A. Mann, Barry S. Roberts

15th Edition

1285141903, 1285141903, 9781285141909, 978-0538473637

More Books

Students also viewed these Law questions

Question

=+2 Identify the treatment and response.

Answered: 1 week ago