Thursday, August 30, 2007

Economics in the Whole Foods Merger Case

Posted by Luke Froeb

Last week, a federal judge refused to grant a preliminary injunction against the Whole Foods acquisition of Wild Oats (FTC website; testimony: day1 am, day1 pm, day2 am). He ruled that "premium, natural and organic supermarkets" was a not a "relevant product market." A relevant market is one in which a hypothetical, multi-product monopolist, owning all stores in the category (and eliminating competition among them), would raise price.

[Read the entire post here]

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