Question

In: Economics

What is required for a coordinated effects theory of harm in a merger case? a. evidence...

What is required for a coordinated effects theory of harm in a merger case?

a. evidence that colluding rivals reached and maintained an agreement

b. detection of deviations from an agreement

c. determining a price level that will prevent the agreement from breaking down

d. higher post-merger prices

Solutions

Expert Solution

Answer A) Evidence that colluding rivals reached and maintained an agreement.

Explanation- The coordinated effect means change in the state of competition and in this a merger might change the scenario of competition and willl make the firms more to coordinate and increase prices or harm the effective competition. Hence evidence that colluding rivals reached and maintained an agreement is required for a coordinated effects theory of harm in a merger case.


Related Solutions

Which of the following is not considered direct evidence of anticompetitive effects in merger analysis? a....
Which of the following is not considered direct evidence of anticompetitive effects in merger analysis? a. natural experiments and actual effects from consummated mergers b. elimination of a maverick firm c. evidence of head-to-head competition d. critical loss analysis
If there is direct evidence of anticompetitive merger effects such as eliminating a head-to-head rival, which...
If there is direct evidence of anticompetitive merger effects such as eliminating a head-to-head rival, which step of the merger guidelines becomes less important? a. determining if merger-related efficiencies outweigh anticompetitive harm b. designing a divestiture remedy to restore competition lost by the merger c. defining relevant markets d. determining if one of the firms is going bankrupt
Explain the theory of the business cycle. What is the empirical evidence on this theory? Select...
Explain the theory of the business cycle. What is the empirical evidence on this theory? Select any three countries to highlight your answer. Do your results support the classical/neoclassical or modern political economy school of thought?
1)      What evidence is there to support String Theory? Is String Theory really a scientific theory,...
1)      What evidence is there to support String Theory? Is String Theory really a scientific theory, or is it “just philosophy”? Why or why not? Does it have potential for proof?
CASE STUDY The Alcatel-Lucent Merger—What Went Wrong? It did not take long after the merger for...
CASE STUDY The Alcatel-Lucent Merger—What Went Wrong? It did not take long after the merger for things to start going wrong for Alcatel-Lucent CEO Patricia Russo, who opted to leave the vendor last month after admitting she could no longer work with fellow board resignee chairman Serge Tchuruk. It seems that this deal was not meant to happen. The original merger negotiation between Alcatel of France, the communications equipment maker based in Paris, and Lucent Technologies, the U.S telecommunication giant,...
What evidence makes the theory of plate tectonics plausible?
What evidence makes the theory of plate tectonics plausible?
What evidence supports/refutes the neurodevelopmental theory of Schizophrenia?
What evidence supports/refutes the neurodevelopmental theory of Schizophrenia?
what evidence is needed to prove an FCPA case?
what evidence is needed to prove an FCPA case?
Review the case study " The merger of Two Competing Hospitals" . The merger phenomenon has...
Review the case study " The merger of Two Competing Hospitals" . The merger phenomenon has been widely observed in the hospital, pharmaceutical and airline in the past decade. If you are the healthcare consultant facilitating the merger between Portor Regional Medical Center (PRMC) and Banner Regional Medical Center (BRMC), what three strategic issues that you would focus on and offer guidance. Include appropriate rationale for your choices and discuss how you would address them to the satisfaction of the...
Explain the concept of coordinated financial statements? In what ways are the major financial statements coordinated?...
Explain the concept of coordinated financial statements? In what ways are the major financial statements coordinated? (4points)
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT