Friday, February 01, 2008

Unit 2: Market dominance and the Competition Commission: Video games retailers

Geoff Riley's blog has this interesting story of the Competiton Commission allowing a merger between the 2 major video games retail chains

a) What possible market failure might arise fron the merger; ie on what grounds could the merger have been blocked?
b)Why was the merger allowed? Do you think the merger is economically sensible?

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