In january 2007 xm enjoyed about 58 of satellite radio


In January 2007, XM enjoyed about 58% of satellite radio subscribers, and Sirius had the remaining 42%. Both firms were suffering losses, despite their dominance in the satellite radio market. In 2008, the DOJ decided not to challenge a merge, and these two firms united become Sirius XM. If you were an economic consultant for Sirius, what economic arguments would you have presented to the DOJ to persuade
it not to challenge the merger? Explain. (Hint: What is your market definition? Is your market contestable?)

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Econometrics: In january 2007 xm enjoyed about 58 of satellite radio
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