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
Attendees look at inno and Helix receivers at the XM satellite...   (Getty Images)
camera-icon View 2 more images

(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.“