Holding everything else constant,government approval of horizontal mergers is more likely to be granted if the 'market' that firms are in is broadly defined rather than narrowly defined.

Question

Quizplus · Accepted Answer

When the market is defined broadly, it is more difficult to argue that a merger would result in a significant increase in market power or a decrease in competition. Thus, government approval of horizontal mergers is more likely to be granted if the market is broadly defined.

Holding Everything Else Constant,government Approval of Horizontal Mergers Is More