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Satellite Sisters

XM and Sirius may have unlikely rescuers from the Chicago School of Economics

By NewsDude ,  Newser Staff

Posted Mar 18, 2007 8:44 PM CDT

(Newser) – Jim Surowiecki describes how the “Chicago School” of economists revolutionized anti-trust thinking in the 1970s. By arguing that it is not the number of competitors but rather their strength that mattered, these economists posited that some mergers stimulate competition.

Their theory may have laid the ground for the seemingly unlikely regulatory approval of the XM/Sirius merger. Surowiecki concludes, “Sometimes, it seems, you can have fewer competitors but more competition.“

Attendees look at inno and Helix receivers at the XM satellite...
Attendees look at inno and Helix receivers at the XM satellite...   (Getty Images)
Satellite Radio Gains Popularity
Satellite Radio Gains Popularity   (Getty Images)
A Dodge Nitro equipped with Sirius Satellite Radio is displayed at the New York International Auto Show on Friday, April 13, 2007 in New York. Sirius Satellite Radio Inc. on Tuesday, May 1, 2007 reported a narrower loss for its first quarter compared with the same period a year ago,...
A Dodge Nitro equipped with Sirius Satellite Radio is displayed at the New York International Auto Show on Friday, April 13, 2007 in New York. Sirius Satellite Radio Inc. on Tuesday, May 1, 2007 reported...   (Associated Press)
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