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Problem 4

As a result of globalization and new information …

Problem 3

Some years ago, two intercity bus companies, Greyhound Lines, Inc. and Trailways Transportation System, wanted to merge. One possible definition of the market in this case was “the market for intercity bus service.” Another possible definition was “the market for intercity transportation, including personal cars, car rentals, passenger trains, and commuter air flights.” Which definition do you think the bus companies preferred, and why?


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Video Transcript

so a number of years ago, the Greyhound Bus Company and Trailways Transportation Systems wanted to combined their firms and form just one big firm. The problem was in defining the market. So here we have this, um, two firms, right? And we want to know what market definition would they prefer doing a merger? The market definition one says that the market is would be defined us. The intercity bus service is market two. On the other hand, or mark definition for the market would be a market for inter city bus service. Is personal cars rental cars passing your trains, commercial flights. So we know right that they would prefer definition, too. And why is done well, That's because we can tell that the definition to it's much broader than definition one. It includes a lot more ah, transactions. So when we talk about the percentage of the market the Greyhound owns or trail way owns, the chair's gonna be much smaller under definition, too, which may allow them to get this merger through the government much easier. Then, if they were in market definitional, one

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