In January 2007, XM enjoyed about 58% of satellite radio subscribers, and Sirius

Question

In January 2007, XM enjoyed about 58% of satellite radio subscribers, and Sirius had the remaining 42%. Both firms were suffering losses, despite their dominance in the satellite radio market. In 2008, the Department of Justice (DOJ) decided not to challenge a merger, and these two firms united to become Sirius XM. What was the HHI in this market before and after the merger? If you were an economic consultant for Sirius, what arguments would you have presented to the DOJ to persuade it not to challenge the merger? Does the HHI tell the whole picture regarding an industry

Explanation / Answer

en.wikipedia.org/wiki/Sirius_Satellite_Radio

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