Microeconomics
Microeconomics
5th Edition
ISBN: 9781319098780
Author: Paul Krugman, Robin Wells
Publisher: Worth Publishers
Question
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Chapter 14, Problem 13P
To determine

  1. Prior to the merger, US market share for Anheuser-Busch InBev and Grupo Modelo
  2. In part IV, section C, how does the Justice Department define a beer market? Why?
  3. Based on the information in part V, in how many markets would the proposed merger exceed HHI threshold of 2,500 points and be considered highly concentrated?
  4. In Appendix A, find the post-merger HHI calculations. Note that ‘Delta HHI’ means the change in HHI. Which market experiences the greatest increase in the HHI ratio and is the most concentrated? Which market is least concentrated? After the merger, what happens to the HHI for the U.S as a whole?

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