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.


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