Managerial Economics - FTC vs. Staples
1) What were the alternative methods used by the FTC and the merging firms to determine whether or not an Office Depot and a Staples outlet were in the same geographical market?
2) How did this differentiation in geographical market measurement affect the pricing behavior estimated by the FTC and by the merging firms? What is the economic term we commonly use for "price sensitive" as used in the paper?
3) Which of the two studies do you find more compelling? Would you allow the merger? Has your company been involved in a similar court injunction (if no, choose a similar example outside your firm)? Identify the case and how it is similar.
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