1. A major concern with horizontal mergers is the increased potential for collusion. List the structural conditions that would encourage coordinated interaction between competitors. 2. Critics are concerned that increasing mergers, especially those involving media firms, threaten democracy. a. Explain that argument. b. Do you agree? Explain. 3. In 1986 distinguished economist William Shepherd argued, It may not be too late to turn back from this road to serfdom by reviving the case for antitrust, but the odds aren’t favorable. More probably, antitrust will continue to sink. 38 a
1. A major concern with horizontal mergers is the increased potential for collusion. List the structural conditions that would encourage coordinated interaction between competitors. 2. Critics are concerned that increasing mergers, especially those involving media firms, threaten democracy. a. Explain that argument. b. Do you agree? Explain. 3. In 1986 distinguished economist William Shepherd argued, It may not be too late to turn back from this road to serfdom by reviving the case for antitrust, but the odds aren’t favorable. More probably, antitrust will continue to sink. 38 a. What did Shepherd mean about “this road to serfdom?” b. In reading this chapter, do you think antitrust has been revived? Explain. c. Is bigness bad, or is it necessary in today’s global economy? Explain.
b. In reading this chapter, do you think antitrust has been revived? Explain. c. Is bigness bad, or is it necessary in today’s global economy? Explain.
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