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Assume That in Colorado the Ski Resorts Can Be Classified

Question 106

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Assume that in Colorado the ski resorts can be classified as "large" and "small" and that there are 12 large and 15 small resorts.Some owners own more than one resort.Assume that there are two owners,each of whom owns two large resorts,who plan to merge.Currently,each owner's two resorts have approximately 15 percent to 20 percent of the Colorado ski market.Each owner's two resorts have about 30 percent to 35 percent of the Colorado Front Range day skier (those from the Colorado Springs,Denver,and Fort Collins areas who drive to a resort,ski,and drive home all in one day)market.Assume that Colorado resorts combined have about 40 percent of the Rocky Mountain ski market and about 15 percent of the national ski market.Discuss what is the relevant market and the factors that would be considered in determining whether the merger should be allowed.

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