(Answered) The market definition approach to merger analysis requires

Management Studies

The market definition approach to merger analysis requires the identification of market power in a relevant antitrust market for the merged entity. The simulation approach tries to estimate the exercise of market power directly, without defining the market. Both are only as good as the data that are fed into them, but they may each have strengths and weaknesses for particular types of case. Discuss the characteristics of different types of mergers that might lead to better operational decisions using one approach or the other.

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