Sunday, February 18, 2007

Unit 1: Market structure; The package holiday market

The Guardian reports a proposed merger between the second and third largest package holiday firms in Europe

http://business.guardian.co.uk/story/0,,2011685,00.html

a) Why do the firms want this merger?
b) What is the implication for the market structure?
c) Why is it unlikely that the Competition Commission will investigate this propsed merger even though the combined group will have a third of the short haul holiday market?

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