Figure 9 Merger Abandonments Case | Product | Number of Firms | HHI/Delta | Plus Factors |
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Northwest/ Continental (1998) | Airlines | Partial acquisition involving 1st and 2nd largest firms on some routes | Depending on route market: 4500 to 10000 / 2380 to 4870 | Eliminate maverick Homogenous products Information exchange History of tacit collusion Barriers to entry Partial ownership stake | British Airways/ American Airlines (2001) | Airlines | Antitrust Immunity on multiple 5-to-4, 4-to-3, 2-to-1 markets | N/A | Homogenous products Information exchange History of tacit coordination Barriers to entry Multi-market contact | United/ US Airways (2001) | Airlines | Multiple 4-to-3, 3-to-2, 2-to-1 markets | N/A | Homogenous products Information exchange History of tacit coordination Barriers to entry Multi-market contact | Formica/ International Paper (1999) | High pressure laminate | Merger of 2nd and 3rd largest in a 4 firm market | 3850/670 | Acquired firm was a possible maverick Homogeneous products Price matching policies Barriers to entry Inelastic demand Competitive fringe had limited ability to expand |
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Updated September 17, 2015