In The Last Three Years Several Academic Studies Analyzing The Growing Number Of Hos 2847874

In the last three years, several academic studies analyzing the growing number of hospital mergers have found that in areas where there are fewer hospitals as a result of consolidations, health care prices are significantly higher.
a) According to the research results summarized above, do hospital mergers have the same effects on prices as predicted by the Cournot model? Explain why that is, and what makes the Cournot appropriate or unsuitable to analyze hospital mergers.
b) Is it possible for a merger that results in higher prices to also cause an increase in:
(i) the consumers’ surplus in that market?
(ii) the total surplus (consumers’ surplus + producers’ surplus) in that market?
c) If you were in charge of defending a proposed acquisition of a nearby hospital to the Federal Trade Commission and other competition authorities, what kind of evidence (data) would you want to present to advance your argument?
3. Consider the following game played by two Hollywood stu