Suppose you work for the ACCC on a case that reminds a senior economist of the heavily
debated decisions on the
GE-Honeywell Merger (2001).
Your task is to review this case and write a succinct report for your colleague team members.
The following points might help you organise your report:
• Give a summary of the case events.
• Describe the relevant market, its functioning and the roles of the major players.
• Argue the government’s side (Department of Justice, European Commission) and the
defendant’s side (GE and Honeywell) of the case using economic theory.
• Analyse the facts of the case and explain the judgments. Give your opinion on the
outcome.
There are plenty of resources for this case online. This merger had to be approved both
by the US Department of Justice (DOJ) and the European Commission. A good starting
point is the DOJ and EU website for the case:
http://ec.europa.eu/competition/mergers/cases/decisions/m2220_en.pdf
https://www.justice.gov/atr/speech/ge-honeywell-us-decision
The Requirements.
The expected length of the report is 2,000-4,000 words in 12pt font. Due date is Friday,
May 31, 2019, 2pm (submit electronically on blackboard). The essay carries a 30%
weight in your final grade for this course. The grading criteria for the essay include:
• evidence of research
• comprehension of literature
• evidence of synthesis of arguments, methodologies and empirical results
• appropriate documentation/citation of sources
• clarity of expression and argument
Sample Solution
