Question: Consider a market that has three firms with the following

Consider a market that has three firms with the following market shares:
Firm A = 35 percent
Firm B = 41 percent
Firm C = 24 percent
Suppose firm A wants to acquire firm C so that the post-acquisition market would exhibit the following shares:
A + C = 76 percent
B = 24 percent
Calculate the pre- and postmerger HHI, and the change in the HHI resulting from the merger. According to Department of Justice guidelines, is this merger likely to be challenged?


View Solution:


Sale on SolutionInn
Sales1
Views139
Comments
  • CreatedSeptember 23, 2014
  • Files Included
Post your question
5000