Question
You consider an industry with numerous very small firms and five large firms. Their market shares are as follows: (9 points) Company Market Share A
You consider an industry with numerous very small firms and five large firms. Their market shares are as follows: (9 points)
Company Market Share
A 30%
B 15%
C 15%
D 5%
E 1%
(a) Companies A and B merge, what should the reaction of the DoJ be according to the Agency standards? Show your work.
(b) Consider now that the merger is between companies A and D. What should the reaction of the DoJ be according to the Agency standards? Show your work.
(c) Consider now that the merger is between companies A and E. What should the reaction of the DoJ be according to the Agency standards? Show your work.
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